Certificate Of Accrual On Treasury Securities (CATS)

Business / Taxes / Certificate Of Accrual On Treasury Securities (CATS): CATS are US Treasury zero-coupon bonds that are sold at deep discount to par, or face value. Like other zeros, the interest isn't actually paid during the bond's term but accumulates so that you receive face value at maturity. You can use CATS in your long-term portfolio to provide money for college tuition or retirement. For example, you may purchase them in a tax-deferred IRA or a tax-free Roth IRA or Coverdell Education Savings Account (ESA). As with other zeros, CATS prices can be volatile, so you risk losing some of your principal if you sell before maturity. And like other federal government issues, the interest is free of state and local income tax but subject to federal income tax.

Other Words for Treasury

Treasury Verb Synonyms: exchequer, bank, cache, resources, funds, money(s)
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Option-Adjusted Spread (OAS)

Business / Finance / Option-Adjusted Spread (OAS): (1) The spread over an issuer's spot rate curve, developed as a measure of the yield spread that can be used to convert dollar differences between theoretical value and market prices. (2) The cost of MORE

Optional Dividend

Business / Finance / Optional Dividend: A dividends that the shareholder can elect to receive either in cash or in stock. MORE

Option Writer

Business / Agriculture / Option Writer: A person who sells an option contract, receives the premium, and bears the obligation to buy or sell the asset at the strike price. MORE

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