Which One of the Following Types of Bonds Should an Investor

question 88

Multiple Choice

Which one of the following types of bonds should an investor purchase if he or she is primarily concerned about ensuring that bond ownership will increase his or her purchasing power?

• A)OTC
• B)Death
• C)CAT
• D)PETS
• E)TIPS

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Definitions:

Canadian Dollars

The currency of Canada, represented as CAD or $.

Gross Recording

An accounting practice where transactions are recorded in full without deducting any related expenses or costs.

Spot Rates

The current market price at which a particular asset can be bought or sold for immediate delivery.

Hedged Date

The date on which a hedge transaction is initiated to protect against future fluctuations in value.