Giulia
Wed Jul 31 2024
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6 answers
1761
How are Treasury strips priced?
Could you please elaborate on the pricing mechanism of Treasury strips? I'm curious to understand how the market determines the value of these securities, which are essentially zero-coupon bonds stripped from Treasury bonds. Do they trade similarly to other fixed-income instruments, or are there unique factors that influence their pricing? Additionally, how does the maturity of these strips impact their pricing, and are there any other key considerations that investors should be aware of when valuing Treasury strips?
