# 🥦 STRIPS

**Published by:** [Let Them Eat Cake](https://paragraph.com/@ltecake/)
**Published on:** 2022-06-21
**URL:** https://paragraph.com/@ltecake/strips

## Content

TL,DR: Like broccoli florets, STRIPS isolate the desirable part of the product STRIPS / Broccoli Florets - partial products packaged for individual sale Eatamology “STRIPS” is an acronym for Separately Trading of Registered Interest and Principal of Securities. Ironically named, they allow investors to strip apart the coupon payments from the principal amount of a Treasury product. Financials Popular STRIPS behave like the zero coupon bonds mentioned below, which like sale items, are sold at a discount. Most retail investors do not invest in individual STRIPS, but will see them show up in a Money Market Fund or conservative ETF. Zero Coupon / Final Sale Like a final sale, when a store looks to sell food approaching expiration, zero coupon bonds are sold at a discount and have a short shelf life. Buyers may pay $990/bond instead of the standard $1000/bond, and instead of periodic interest payments, they will receive $1000 back at maturity. When Bills are sold as zero coupon bonds, investors refer to them as STRIPS. Nutrition Facts Price: Premium Issue Frequency: bi-weekly Maturity: Short Interest/Coupon Amount: Low - Medium Coupon Type: Zero Yield: Low - Medium Tax Status: Tax Exempt

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