With reference to the Indian economy, what are the advantages of Inflation-Indexed Bonds (IIBs)"?
1. Government can reduce the coupon rates on its bor

Question

With reference to the Indian economy, what are the advantages of Inflation-Indexed Bonds (IIBs)"?
1. Government can reduce the coupon rates on its borrowing by way of IIBs.
2. IIBs provide protection to the investors from uncertainty regarding inflation.
3. The interest received as well as capital gains on IIBs are not taxable.
Which of the statements given above are

Accepted Answer

(A) 1 and 2 only

Answer

(B) 2 and 3 only

Answer

(C) 1 and 3 only

Answer

(D) 1, 2 and 3