Which one of the following is a security that only pays the principal cash flows to investors?

Question

Quizplus · Accepted Answer

A principal-only strip is a security that pays only the principal cash flows to investors. This means that the interest payments on the underlying asset are not part of the security's cash flows, as they are in other types of securities such as interest-only strips or amortized strips. Therefore, the best choice is D.

Which One of the Following Is a Security That Only