SIE Exam Question 706: Answer and Explanation

Question: 706

Which of the following is correct regarding the selling price of Treasury STRIPS?

• A. They are sold at a discount from face value.
• B. They are sold at a premium to face value.
• C. They are sold at face value.
• D. They are sold at either a discount or premium to face value.

Correct Answer: A

Explanation:

Treasury STRIPS are sold at a discount from face value.