Strip Bond

What Does Strip Bond Mean?
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 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.

Related Terms

Bond
Coupon
Debt
Par Value
Principal
Zero-Coupon Bond
More Related Terms

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