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What does Treasury Strips mean?

幫考網(wǎng)校2020-10-12 10:32:24
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Treasury Strips are securities that are created by separating the interest and principal payments of U.S. Treasury bonds and selling them as individual securities. These securities are also known as zero-coupon bonds because they do not pay interest like traditional bonds. Instead, they are sold at a discount to their face value and the investor receives the full face value at maturity. Treasury Strips are popular among investors who want to lock in a specific return and hold the security until maturity.
幫考網(wǎng)校
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