TREASURY INFLATION-ADJUSTED SECURITIES

People often choose to invest in United States Treasury-backed securities because of the bonds' safety from default.  One disadvantage of investing in bonds had always been the risk of losing purchasing power as the result of inflation.  For this reason, the U.S. Treasury developed a new type of security -- the inflation-adjusted bond, the topic of this tutorial.

Important Terms What Is an Inflation-Adjusted Security? Characteristics of Inflation-Adjusted Securities Advantages of Inflation-Adjusted Securities How Are Inflation-Adjusted Securities Taxed? Invest in the Treasury and Beat Inflation, Too

Let's begin with a few basic definitions of the most common terms related to bonds.