Treasury Inflation Protection Bonds (tips)

Definition of "Treasury inflation protection bonds (tips)"

Bonds issued by the United States Treasury that pay a semiannual interest rate tied to the Treasury auction plus an additional interest rate tied to the rate of inflation during this semiannual period. The rate of inflation is measured by the increases or decreases in the Consumer Price Index for Urban Consumers (CPI-U). The TIPs are issued in minimum denominations of $1000 with varying maturities. The additional rate of inflation interest adjustment is paid on the principal of the bond at maturity. Taxes are paid annually on both the interest earned on the TIP as well as the additional rate of inflation interest adjustment.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Financial guarantee policy that insures against loss of principal invested in a mutual fund. ...

Coverage for exposures that exhibit a possibility of financial loss. ...

Coverage for a loss incurred by the insured resulting from an infringement of the insured's patent or coverage for a claim made against the insured resulting from infringement by the ...

Investment strategy that advocates the transfer of amounts from one category of investment to another category according to a perception of how each of these categories of investments will ...

Appreciation in the unsold assets' value. When assets are sold, their capital gain (loss) is shown on the insurance company's income statement; any unrealized gain or loss is not included ...

Record of debit or industrial insurance policies. ...

Income paid under a disability policy that is not covered under workers compensation benefits. It is usually expressed as a percentage of the insured's income prior to the disability, but ...

1957 federal law setting a limit on the liability of operators of nuclear facilities. The law, an amendment to the Atomic Energy Act of 1954, authorized establishment of private insurance ...

Federal statute relating to drug abuse policies that requires all employers with federal contracts at least equal to $25,000 to certify, as a condition of receiving a federal contract, that ...

Popular Insurance Questions