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zero-coupon and STRIPS

hi All,
i'm a bit confused. according to the CFA1 Curriculum Vol 5, Reading 64, page 455, "Treasury STRIPS", "...the U. S. Department of the Treasury doesn't issue zero-coupon treasury securities with maturity greater than one year". But government dealers can do that-they separate the "coupon payments and the principal payment ..."

my questions are: (1) are those securities thus issued (by the gov't dealers) no more "zero-coupon" securities? (2) if they are, why are they "stripped" into "coupon payments" and "principal payment"? (they are "zero-coupon" securities, so why "coupon payments"?) or does the "stripping" process change those securities from "zero-coupon" to "coupon-paying" securities?

koba

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