Series 7 - General Securities Representative Exam

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

All of the following are TRUE about Treasury STRIPS EXCEPT

The security’s principal and interest is paid at maturity

A

The security’s interest is paid semiannually and the principal is paid at maturity

B

Investors must pay tax on interest earned annually

C

They are zero-coupon securities issued by brokerage firms and based on receipts for Treasury securities

D