- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 2. Fixed-Income Cash Flows and Types
- Subject 1. Fixed-Income Cash Flow Structures
CFA Practice Question
Which type of bonds can reduce inflation risk for investors?
B. PIK coupon bonds
C. TIPS
A. ELNs
B. PIK coupon bonds
C. TIPS
Correct Answer: C
TIPS are inflation-linked bonds.
User Contributed Comments 2
| User | Comment |
|---|---|
| Catalin92 | PIK - Payment in kind TIPS - Treasury INFLATION protected securities |
| ibrahim18 | Why not just say payment in kind? |