Treasury Strips Question

[Howd]

Question #30 from CFA SS 15 reading 64
“A U.S. Treasury note with exactly four years to maturity:
A. Can be broken into, at most, two Treasury Strips
B. Can be broken into, at most, four Treasury Strips
C. Can be broken into, at most, five Treasury Strips
D. Can not be used to create Treasury STRIPS as only U.S. Treasury bonds are allowed to be sold as stripped securities”
I am under the impression the answer is 9 (four years X 2 + principal)
What am I reading wrong?

 

[wyantjs]

That is correct. Therefore, d would be the answer.

 

[Howd]

The answer is in the book is “C” . Also, Treasury notes can be stripped. Is this errata?

 

[Dreary]

Since there is no option for “9”, you take the best answer, which is C.

 

[nhung.tran]

it seems to be annual payment notes… still strange for US notes but It would be the only reason i could think of

 

[Howd]

I was under the impression that all Treasury notes were semiannual. Taking the best answer “C” does not address whether this question contains an error or not.

 

[JoeyDVivre]

Just an error.

 

[gdiddy]

And that’s from the fixed income section.
Come on Fabozzi, you’re better than that…