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When a dealer strips a Treasury bond and sells the strips in the bond market, what is the coupon on each stripped bond?

July 19, 2012


Each Treasury strip is a zero-coupon instrument. Its yield is determined by the market through active trading.


From → Asset Valuation

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    An acronym for ‘separate trading of registered interest and principal securities’. Treasury STRIPS are fixed-income securities sold at a significant discount to face value and offer no interest payments because they mature at par.

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