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Business, 04.08.2021 01:00 kymberlyasher

The U. S. Treasury offers some of its debt as Treasury Inflation Protected​ Securities, or​ TIPS, in which the price of bonds is adjusted for inflation over the life of the debt instrument. TIPS bonds are traded on a much smaller scale than nominal U. S. Treasury bonds of equivalent maturity. What can you conclude about the liquidity premium between TIPS and nominal U. S.​ bonds?

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