Investors who want cash flows in near terms shows preference for
A
interest portion of RIAPS
B
interest portion of STORI
C
interest portion of STRIPS
D
interest portion of bonds
Correct Answer: interest portion of STRIPS
Investors who want cash flows in near terms shows preference for interest portion of STRIPS. Interest only (IO) strips are a security where the holder receives the non-principal portion of the monthly payments on the underlying mortgages, Treasury bonds or other bonds.