Treasury strip bonds are popular because
I. they are high-quality bonds.
II. they have a wide range of maturities.
III. they are very liquid.
IV. their income is not taxed until the bonds mature.

Question

Quizplus · Accepted Answer

Treasury strip bonds are high-quality because they are backed by the U.S. government, and they offer a wide range of maturities. They are also very liquid due to the active market for U.S. government securities. However, their income is taxed annually as it accrues, not deferred until maturity.

Treasury Strip Bonds Are Popular Because