Strip Bond

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Dictionary Says

Definition of 'Strip Bond'

A bond where both the principal and regular coupon payments--which have been removed--are sold separately. Also known as a "zero-coupon bond."
Investopedia Says

Investopedia explains 'Strip Bond'

An investment firm will usually buy a debt instrument and "strip" it into its separate parts. Strip bonds usually trade at a discount and mature to par value.

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