n NISM Certifications
X NISM Series X
Medium

On which type of bonds is the interest rate periodically reset based on inflation?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Junk Bonds

  2. B

    Infrastructure Bonds

  3. Inflation Indexed Bonds

    Correct answer

  4. D

    Deep Discount Bonds

Why this is the answer

These bonds have interest rates that are adjusted periodically according to inflation rates, protecting investors’ real returns.

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