________ are examples of synthetically created zero-coupon bonds.

Question

Quizplus · Accepted Answer

STRIPS (Separate Trading of Registered Interest and Principal Securities) are securities that have been created from existing bonds by separating the principal and interest payments and selling them as separate securities. Since these securities don't have any interest payments, they are considered to be zero-coupon bonds. This makes option C the correct answer. COLTS are collateralized loan obligations, OPOSSMS is not a financial instrument, and ARMs are adjustable-rate mortgages, which are not synthetically created zero-coupon bonds.

________ Are Examples of Synthetically Created Zero-Coupon Bonds