CATS


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CATS

Certificate of Accrual on Treasury Securities

A formerly-issued Treasury security whose coupons had been stripped by an intermediary. CATS therefore paid no interest. They were sold at a significant discount from par and matured at par. CATS fluctuated in price, sometimes dramatically, because changes in interest rates made them more or less desirable. CATS could be invested IRAs and other pension accounts; they were also exempt from state and local taxes. They were issued between 1982 and 1986, becoming obsolete when the U.S. Treasury began issuing its own stripped bonds. See also: Zero-Coupon Bonds.

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.

References in classic literature ?
I approached and saw, as if graven in bas relief upon the white surface, the figure of a gigantic cat.
Cats, by the way, rarely suffer from excess of adulation.
Conceive my emotions, monsieur, when this fat, beastly cat is placed before me upon my desk!
I never saw a larger cat, nor a more disreputable-looking cat.
Swiftly and silently he glided through the forest in the wake of the savage cat, nor was the pursuer, for all his noble birth, one whit less savage than the wild, fierce thing he stalked.
Trotting along behind her, close to her heels, was quite the most forlorn specimen of the cat tribe she had ever beheld.
He was staring at her with bristling hair, recognizing her for what she was, a cat, when she sprang again, her tail the size of a large man's arm, all claws and spitting fury and vindictiveness.
You will have light enough to see the cats by," she said, "without having too much light for
And the cats on the route saw reason to give thanks that prehensile claws had been given them.
The Cat had no cousin, and had not been asked to be godmother.
The sun got round behind the wood, and it was quite late in the afternoon; but still the cat sat upon the basket.
The ass and the dog laid themselves down under a great tree, and the cat climbed up into the branches; while the cock, thinking that the higher he sat the safer he should be, flew up to the very top of the tree, and then, according to his custom, before he went to sleep, looked out on all sides of him to see that everything was well.