The coupons and residue are sold separately to investors. Each of the investments then pays a single lump sum. That method of creating zero coupon bonds is known as stripping, and the contracts are known as strip bonds. "STRIPS" stands for Separate Trading of Registered Interest and Principal Securities.
The coupons and residue are sold separately to investors Each of the investments then pays a single lump sum That method of creating zero coupon bonds is known as stripping and the contracts are known as strip bonds "STRIPS" stands for Separate Trading of Registered Interest and Principal Securities