SIE Exam Question 925: Answer and Explanation

Question: 925

Treasury notes, Treasury bonds, and TIPS, whose interest and principal portions have been separated so they may be sold individually, are referred to as which of the following?

• A. Treasury GICs
• B. Treasury CMOs
• C. Treasury STRIPS
• D. Treasury UITs

Correct Answer: C

Explanation:

Treasury notes, Treasury bonds, and TIPS, whose interest and principal portions have been separated so they may be sold individually, are referred to as Treasury STRIPS.