Q300
In financial markets, STRIPS are also classified as
A.
treasury KIBOR notes
B.
treasury KIBOR bonds
C.
treasury zero coupon bonds
AnswerD.
treasury LIBOR bonds
Answer: Option C
Solution
Answer: Option C
Solution:
In financial markets, STRIPS are also classified as treasury zero coupon bonds. A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.