Why Would an Investor Prefer a TIPS Which Offers a Lower

question 87

Short Answer

Why would an investor prefer a TIPS which offers a lower coupon rate over a comparable T-note with a higher coupon rate?

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Definitions:

Null Hypothesis

A default hypothesis that there is no significant effect or difference between specified populations.

Reject

In statistical hypothesis testing, it refers to the decision to not accept the null hypothesis based on the evidence from the data.

F-Ratio

A statistic used in ANOVA to compare the variance among group means to the variance within groups; a measure of variance between groups relative to variance within groups.

Main Effect

In statistical analysis, the direct impact of an independent variable on a dependent variable, disregarding the influences of or interactions with other variables.