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Finance Dictionary and Glossary of Investment Terms
Treasury Inflation Protected Securities - TIPS
Definition 1.
A special type of Treasury note or bond that offers protection from inflation. As with other Treasuries, when you buy an inflation-indexed security you receive interest payments every six months and a payment of principal when the security matures. The difference is that the coupon payments and underlying principal are automatically increased to compensate for inflation by tracking the consumer price index (CPI).
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