Question

A bond issue containing a range of maturity dates is called a ____ bond. A. junk...

A bond issue containing a range of maturity dates is called a ____ bond.

A. junk

B. bearer

C. serial

D. registered

E. term

Which of the following is true about STRIPS ?

A. STRIPS provide investors with protection against inflation.

B. STRIPS are good for immunizing portfolios from interest rate risk.

C. STRIPS are issued directly by the U.S. Treasury.

D. STRIPS accrued interest is taxed only when the security matures or is sold and not on the annual basis.

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Answer #1

A bond issue containing a range of maturity dates is called a serial bond.

A serial bond is a bond issue that is structured so that a portion of the outstanding bonds mature at regular intervals until all of the bonds have matured.

Which of the following is true about STRIPS ?

B. STRIPS are good for immunizing portfolios from interest rate risk.

STRIPS donot provide investors with protection against inflation

STRIPS are not issued directly by US Treasury

STRIPS interest is exempt

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