In financial markets, the STRIPS are also classified as ___________?
Correct answer: C. treasury zero coupon bonds
- A. treasury KIBOR notes
- B. treasury KIBOR bonds
- C. treasury zero coupon bonds
- D. treasury LIBOR bonds
Explanation
STRIPS are Treasury securities whose principal and interest payments are separated and sold as individual zero-coupon securities. They therefore provide payment only at maturity and are classified as Treasury zero-coupon bonds.
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