Definition of Certificate of Accrual on Treasury Securities (CATS)

U.S. Treasury issues, sold at a deep discount from face value. A zero coupon security, they pay no interest during their lifetime, but return the full face value at maturity. They are appropriate for retirement or education planning. As Treasury securities, CATS cannot be called.

U.S. Treasury issues, sold at a deep discount from face value. A zero-coupon security, they pay no interest during their lifetime, but return the full face value at maturity. They are appropriate for retirement or education planning. As treasury securities, CATS cannot be called away.