Which of the following statements is not true about Treasury Inflation-Protected Securities?
A)They are currently sold with 5-,10-,or 30-year maturities.
B)The amount of principal increases with inflation and decreases with deflation.
C)They pay interest twice a year,at a fixed rate.
D)They can be held until maturity or sold before maturity.
E)Interest income and growth in principal are exempt from federal income tax.

Question

Quizplus · Accepted Answer

Interest income and growth in principal from Treasury Inflation-Protected Securities (TIPS) are subject to federal income tax, but they are exempt from state and local income taxes.

Which of the Following Statements Is Not True About Treasury