Should Investors Stash Money in TIPS Now? Smart Investment Move - Market Realist

TIPS pay interest to investors twice per year at a fixed rate. These interest payouts are called coupon payments.

While the payout comes in the form of a fixed rate, the bond's principal is always changing, which means that the coupon payment is changing right along with it. In theory, more inflation means a higher principal, which means that the fixed rate provides a higher payout on the TIPS.

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