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To: re3 who wrote (47994)	6/18/1999 1:15:00 PM
From: Haim R. Branisteanu	Respond to of 86076

IK, spreads are a problem not only in bonds but in stocks also. As to the zeros yes the spreads are wider, but so are the swings. I would relate to zeros or strips as option. You buy a 2023 year bond strip for around $230 with a face value of $1000. The wings in both direction are the same. As an example the November 15, 2023 strip was quoted this morning at $219.89 - $225.92 If translated in "option spread" it will be like Bid $2 3/16 - Ask $2 1/4 by all measures a small spread. Aside teh price does not depreciate with time it actually increases with time <GG> BWDIK Haim