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What Is the Difference Between an Inflation-Indexed Treasury Bond,and a Treasury

Question 46

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What is the difference between an inflation-indexed Treasury bond,and a Treasury bond that is not indexed?


A) An inflation-indexed Treasury bond guarantees a certain real rate of return,while a nonindexed Treasury bond does not.
B) A nonindexed Treasury bond guarantees a certain real rate of return,while a nonindexed Treasury bond does not.
C) An inflation-indexed Treasury bond can only be purchased directly from the Federal Reserve,while a nonindexed Treasury can be purchased through a broker.
D) An inflation-indexed Treasury bond always guarantees the purchaser a 5 percent rate of return,while a nonindexed Treasury bond does not.

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