U.S.Treasury Strips Are

question 12

Multiple Choice

U.S.Treasury strips are:

• A)Bonds where the present value of the final payment and coupon payments are sold separately
• B)Bonds that are stripped of their financial rating
• C)Another name for Treasury Bills
• D)Initially zero-coupon bonds

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Definitions:

Sampling Distribution

The probability dispersion of a particular statistic, facilitated by a randomly selected sample.

Z-Value

A statistical measure that quantifies the number of standard deviations a data point is from the mean of a data set.

Standard Error

A measure of the statistical accuracy of an estimate, equal to the standard deviation of the theoretical distribution of a large population of such estimates.

N

A symbol often used to represent a sample size or the number of observations or units in a dataset.