Which of the following bonds is considered a zero coupon bond?

A zero coupon bond is a type of bond that does not pay periodic interest or coupons during its life. Instead, it is sold at a discount to its face value and pays the full face value at maturity. Stripped Treasury bonds are indeed an example of zero coupon bonds. They are created by separating the principal and interest payments of Treasury bonds, giving investors the option to buy just the principal or the interest portion separately. Thus, when investors purchase Stripped Treasury bonds, they are essentially buying a bond that will not provide any interest during its term but will deliver a lump sum at maturity, which aligns perfectly with the characteristics of zero coupon bonds.

On the other hand, general obligation bonds, revenue bonds, and corporate bonds typically provide regular interest payments to their holders, which disqualifies them from being categorized as zero coupon bonds. General obligation bonds are backed by the issuing municipality's ability to tax, revenue bonds are repaid from specific revenue sources, and corporate bonds pay interest to investors periodically, all contributing to their distinction from zero coupon bonds.