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by JumpCrisscross
1519 days ago
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> from what I'm seeing they're something like 1-2% interest. Inflation is > 8% right now per the government's own numbers That's a real yield. TIPs "adjust in price (principal amount) in order to maintain their real value" when inflation rises [1]. So if you buy a TIP for 100 that pays 2%, and inflation is 8%, the face value is adjusted to 108 and you get a 2.16 coupon. (Super simplified, to the point of being technically incorrect, but framework-wise fine.) [1] https://www.investopedia.com/terms/t/tips.asp |
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