A. STRIP
B. separated security
C. inflated security
D. coupon paid security
✅ The correct answer is option A.
Treasury security in which final principal payment is separated from periodic interest payment is classified as STRIP. They are securities that represent the separate interest and principal components of Treasury securities.
Treasury security in which final principal payment is separated from periodic interest payment is classified as STRIP. They are securities that represent the separate interest and principal components of Treasury securities.