TIPS are

A) securities formed from the coupon payments only of government bonds.
B) securities formed from the principal payments only of government bonds.
C) government bonds with par value linked to the general level of prices.
D) government bonds with coupon rates linked to the general level of prices.
E) zero-coupon government bonds.

Par Value

The face value of a bond or stock, typically the amount paid at maturity for bonds and the nominal value for stocks.

Government Bonds

Debt securities issued by a government to support government spending and obligations.

General Level

Typically refers to the overall state or condition of something, often used in discussions about prices, economic conditions, or the level of activity in a market.