Q288
Treasury security in which final principal payment is separated from periodic interest payment is classified as
A.
STRIP
AnswerB.
separated security
C.
inflated security
D.
coupon paid security
Answer: Option A
Solution
Answer: Option A
Solution:
Treasury security in which final principal payment is separated from periodic interest payment is classified as STRIP. They are securities that represent the separate interest and principal components of Treasury securities.