Interest-Only Strips Are Securities That Do Which One of the Following

question 10

Multiple Choice

Interest-only strips are securities that do which one of the following?

• A)pay interest only at maturity
• B)pay only the interest cash flows to investors
• C)pay interest over the life of the security and the entire principal at maturity
• D)pay interest only when requested by the holder with all remaining amounts paid at maturity
• E)pay interest monthly and principal quarterly

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