What Are the Tips?

tips stands for treasury inflation protected securities. Other people think it stands for something else, which i can't say on the air. When you buy a tips bond at issue cant you buy a hundred dollars with f a tip's bond, and it has some coop on, let's just say, one %. And and then inflation happens. So when ift wen, it redeems you 200 dollars back. Which make cense. You gave him a hundred, the price level double you got 200 dollars back in the coupon. Then that one % i now calculated on a 200 notional so your coupon goes up to two %. That also makes sense, because your coupon was originally