SIE practice questionmediumTreasury Securities - STRIPS
Which feature distinguishes Treasury STRIPS from T-notes and T-bonds?
- APeriodic coupon payments
- BZero-coupon structure✓ Correct answer
- CCallable feature
- DConvertible feature
Explanation
Why B — Zero-coupon structure
STRIPS are zero-coupon securities, paying no periodic interest. T-notes and T-bonds pay semiannual interest and are not convertible.
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