Q386
Investors who want cash flows in near terms shows preference for
A.
interest portion of RIAPS
B.
interest portion of STORI
C.
interest portion of STRIPS
AnswerD.
interest portion of bonds
Answer: Option C
Solution
Answer: Option C
Solution:
Investors who want cash flows in near terms shows preference for interest portion of STRIPS. Interest only (IO) strips are a security where the holder receives the non-principal portion of the monthly payments on the underlying mortgages, Treasury bonds or other bonds.