Treasury strips provide return through:
A)increase in value over their life.
B)high-dividend yields.
C)indexing for inflation.
D)changing par value with the passage of time.

Question

Quizplus · Accepted Answer

Treasury strips pay no interest, and all returns to the investor come in the form of increases in the value of the investment (as is true of Treasury bills, also). Treasury strips are referred to as zero-coupon securities because of the absence of interest payments.

Treasury Strips Provide Return Through