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Steve wants to invest in five-year bonds but fears that inflation will be significant over that period of time. Which bonds will most likely meet his investment needs?

TIPS

municipal bonds

fixed-rate Treasury bonds

zero coupon bonds

1 Answer

1 vote
The answer for the given question above would be the first option. Based on the given scenario above about Steve's investment, the bonds that will most likely meet his investment needs is TIPS or the Treasury Inflation Protected Securities. This protects investors from the negative effects of inflation. Hope this helps.
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User Godinall
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