Treasury inflation-protected securities

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Reference no: EM132006666

1. A bank advertises a savings account that pays 3.0% compounded annually.

A. If the CPI rises by 2.0% over the next 12 months, what would be the real rate of return on the account for the period? Express your answer to 2 decimal places.

2. Has TIPS (Treasury Inflation-Protected Securities) tended to outperform inflation, or not? Explain your answer.

3. A/an ________________________ is when a group of investment banks agrees to move an IPO issue together.

(a) Underwriting syndicate

(b) Overwriting syndicate

(d) Collaborative syndicate

(e) none of the above

Reference no: EM132006666

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