strippable bond


A bond that is usually a US treasury security that can be sold in two separate parts. The regular coupon and the principal are divided and each sold separately. Strip bonds are generally sold for deep discounts and fluctuate greatly in price depending on interest rates. Unlike other securities these bonds can be placed in pension accounts and IRAs and they are subject to federal taxes.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
strip mortgage participation certificate (strip PC) stripped coupon