A Treasury strip is a type of Treasury zero-coupon bond.

Name: A Treasury strip is a type of Treasury zero-coupon bond.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

A Treasury strip is a type of zero-coupon bond issued by the U.S. Treasury. It is created by separating the principal and interest payments of a bond and selling them separately as individual securities. Strips do not pay periodic interest, but they are sold at a discount to their face value and mature at their face value, creating a capital gain for the investor.

A Treasury Strip Is a Type of Treasury Zero-Coupon Bond