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Steve wants to invest in five-year bonds but fears that inflation will be significant over that period of time. Which bonds will most likely meet his investment needs?


TIPS


municipal bonds


fixed-rate Treasury bonds


zero coupon bonds

Verified Answer :

metchelle

The answer for the given question above would be the first option. Based on the given scenario above about Steve's investment, the bonds that will most likely meet his investment needs is TIPS or the Treasury Inflation Protected Securities. This  protects investors from the negative effects of inflation. Hope this helps.

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