Which of the following statements about STRIPs is true?
A) STRIPs are sold directly by the Treasury Department
B) When a STRIP is created, all interest payments become one security and the principal payment becomes the other.
C) Many small investors prefer STRIPs because they require a lower minimum investment than original Treasury notes and bonds.
D) Treasury securities dealers create STRIPs because they expect to sell the created zero-coupon securities for more than what they paid for the original Treasury security.
E) None of the above statements is true.
Correct Answer:
Verified
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