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What is meant by coupon stripping in the Treasury market?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 3MCQ

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Question

a. What is meant by coupon stripping in the
Treasury market?
b. What is created as a result of coupon stripping
in the Treasury market?

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