Last Year,you Purchased a "TIPS" at Par

question 77

Multiple Choice

Last year,you purchased a "TIPS" at par.Since that time,both market interest rates and the inflation rate have increased by 0.25 percent.Your bond has most likely done which one of the following since last year?

• A)decreased in value due to the change in inflation rates
• B)experienced an increase in its bond rating
• C)maintained a fixed real rate of return
• D)increased in value in response to the change in market rates
• E)increased in value due to a decrease in time to maturity

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Definitions:

Selective Questioning

A technique of asking questions that are strategically chosen to guide a conversation or elicit specific information.

Successful Salesperson

A sales professional who consistently meets or exceeds sales targets through effective selling practices and customer relations.

Probing

The act of gathering information and uncovering customer needs using one or more questions.

Senser Personality

A term likely related to a type of personality that is highly attuned to sensory data from the external environment, usually practical and detail-oriented (note: generally, this concept aligns with the Sensing preference in the Myers-Briggs Type Indicator).