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What are examples of synthetically created zero-coupon bonds?

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Final answer:

A synthetically created zero-coupon bond is a Treasury STRIP, which is formed by separating the interest payments and principal of a Treasury bond and selling them as individual securities.

Step-by-step explanation:

Zero-coupon bonds are bonds that do not pay interest periodically.

An example of a synthetically created zero-coupon bond is a Treasury STRIP (Separate Trading of Registered Interest and Principal of Securities).

A Treasury STRIP is created when the interest payments and the principal of a Treasury bond are separated and sold as individual securities. By creating these separate securities, the Treasury effectively creates zero-coupon bonds.

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