Question:

Inflation-indexed bonds?

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do inflation-indexed bonds GUARANTEE a fixed real return over a long time?

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  1. Yes. every year the principle on the bond is increased by the cpi and the interest due is either add to the principle of or paid to you. So the real value of your initial investment is guaranteed not only at maturity but at  all the times. However  the increase in the value of the bond is treated like income and you must pay  income taxes on it.

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