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Which of the following statements regarding STRIPS is most accurate? Group of answer choices STRIPS let investors hold and trade the individual interest and principal
Which of the following statements regarding STRIPS is most accurate?
Group of answer choices STRIPS let investors hold and trade the individual interest and principal components of eligible Treasury notes and bonds as separate securities. STRIPS are very short-term securities with maturity dates as few as two or three days. Competitive bids for STRIPS can be purchased through Treasurydirect.gov. Interest earned on STRIPS is free of federal taxes.
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