Indexed bonds that are issued by linking payments to inflation are classified as

treasury inflation protected securities
premium protected securities
risk protected securities
liquidity protected securities

The correct answer is: A. treasury inflation protected securities (TIPS).

TIPS are a type of government bond that is indexed to inflation. This means that the principal value of the bond and the interest payments are adjusted for inflation, so that the investor is protected from the effects of rising prices.

TIPS are issued by the U.S. Treasury Department and are considered to be one of the safest investments available. They are also relatively low-risk, as they are backed by the full faith and credit of the U.S. government.

TIPS are a good investment for investors who are looking for a way to protect their money from inflation. They are also a good investment for investors who are looking for a relatively low-risk investment.

Here is a brief explanation of each option:

  • Treasury inflation protected securities (TIPS) are a type of government bond that is indexed to inflation. This means that the principal value of the bond and the interest payments are adjusted for inflation, so that the investor is protected from the effects of rising prices.
  • Premium protected securities are a type of bond that is designed to protect the investor from the risk of rising interest rates. These bonds typically have a higher yield than regular bonds, but they also have a higher risk.
  • Risk protected securities are a type of bond that is designed to protect the investor from the risk of default. These bonds typically have a lower yield than regular bonds, but they also have a lower risk.
  • Liquidity protected securities are a type of bond that is designed to protect the investor from the risk of illiquidity. These bonds are typically easier to sell than regular bonds, but they also typically have a lower yield.