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Bonds 205: TIGRs, CATS, and LIONs

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1.
CATS were securities issued by the US Treasury and sold by brokerage firms.
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False. CATS were securities issued by brokerage firms based on Treasury bonds that they purchased and placed in escrow.
2.
Even though felines were issued by private firms, they were still relatively secure bonds.
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True. Even though they were issued by private firms, these bonds were based on Treasury securities held in escrow.
3.
TIGRs, CATS, and LIONs are acronyms _______.
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Created by brokerage firms. TIGRs, CATS, and LIONs are acronyms created by brokerage firms for securities based on Treasury bonds.
4.
Coupon-stripping consists of separating a bond's interest from its _______.
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Principal. Coupon stripping consists of separating a bond's interest from its principal and issuing securities based on each of them separately.
5.
Compared to its face value, the issuing price of a CATS or TIGR was _______.
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Much lower. Like that of all zero coupon securities, the issuing price was deeply discounted.