Stripped Treasury Securities Are Zero-Coupon Instruments That, While Not Issued

question 27

True/False

Stripped Treasury securities are zero-coupon instruments that, while not issued by the U.S. government, are backed by Treasury securities from which they are created.

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Definitions:

Carbon Monoxide

A colorless, odorless, and tasteless gas with the chemical formula CO, highly toxic to humans and animals when inhaled.

Triple Bond

A chemical bond in which three pairs of electrons are shared between two atoms, making it the strongest and shortest among the types of chemical bonds.

Covalent Bonds

Chemical bonds formed by the sharing of electrons between atoms, leading to stable molecules.

Electrons

Subatomic particles with a negative charge, found in electron shells surrounding the nucleus of an atom.