Matures Strips ★

: Each resulting strip becomes a zero-coupon bond , meaning it does not pay periodic interest but is instead sold at a deep discount to its face value.

In financial markets, "matures" refers to the date a bond's principal is repaid, while stands for Separate Trading of Registered Interest and Principal of Securities . This process allows investors to treat the individual components of a Treasury bond as standalone investments. Core Concept of STRIPS matures strips

For official details on how these securities are managed, you can visit the TreasuryDirect STRIPS page . : Each resulting strip becomes a zero-coupon bond

: A standard bond is "stripped" into its principal repayment and its individual interest (coupon) payments. Core Concept of STRIPS For official details on

: Because they are backed by the U.S. Treasury, they carry minimal default risk, though they are highly sensitive to interest rate changes before they mature.

: Each strip "matures" on the date the original payment was scheduled to occur. Investment Characteristics