"Treasury zeros" are Treasury bonds that have been split or "stripped" into a zero coupon discount Treasury certificate and a series of interest payments (the coupon payments).These bonds are safer than corporate zeros and thus,are very popular with institutional investors such as pension fund managers.

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Treasury zeros are split or stripped from Treasury bonds into a zero coupon discount Treasury certificate and a series of interest payments, making them safer than corporate zeros, and popular among institutional investors such as pension fund managers.

"Treasury Zeros" Are Treasury Bonds That Have Been Split or "Stripped