Investor Glossary-treasury inflation-protected securityInvestor Glossary-treasury inflation-protected securityInvestor Glossary-treasury inflation-protected securityInvestor Glossary-treasury inflation-protected securityInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Treasury Inflation-Protected Security

WordPress
The HTML to link to this page
 

A Treasury Inflation-Protected Security (TIPS) is a U.S. Treasury bond whose interest and redemption payments are tied to inflation. A Treasury Inflation-Protected Security pays a fixed rate of interest, with principal value adjusted semiannually, based on changes in the Consumer Price Index. Consequently, interest payments of a Treasury Inflation-Protected Security may vary. At maturity (5, 10, or 20 years), the Treasury Inflation-Protected Security returns the initial principal to the investor, adjusted for inflation.
Like other Treasury securities, a Treasury Inflation-Protected Security is "backed by the full faith and credit of the United States government" and is exempt from state and local income taxes, but is subject to federal income tax. A gain in principal in a Treasury Inflation-Protected Security is considered reportable income for that year, even though principal is not distributed until the Treasury Inflation-Protected Security matures.



Rate this Treasury Inflation-Protected Security definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: required rate of return, ex-dividend, Zero Cost Collar, debt service coverage, quality assurance, class C shares, LIBOR, command economy, stock market close, per diem, VIX, reverse mortgage, 401a, current ratio, implied volatility, labor relations, stock split, deferred tax, APR, cancelled check, 1035 exchange, phantom income, deferred revenue, liquidity ratio, minority interest, in escrow, real GDP, irrevocable trust, average price per share, covered put, inflation, open position, 1031 exchange, Key Rate Duration, margin rate, EBITDA, risk management, retained earnings, 144a, wholly-owned subsidiary, FTSE, dividends payable, limit order, ex-dividend date, balance sheet, FICO score, annual return, option premium, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use