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Strip Bonds (sometimes called Stripped Bonds) are created by investment dealers hereby the interest portion of government bonds, Federal or Provincial, are literally stripped from the principal portion. The separated coupons and remaining principal are then sold separately to investors.

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Strip Bonds are like Government Treasury Bills in that they pay no interest until maturity. Strip Bond prices depend on the current interest rate levels and fluctuate from day to day. Until maturity however, strip prices are always below par ($).

Views: 5039 Date: 29.06.2019 Favorited:56
Category: Strip

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ezeye 02.07.2019 at 15:01 says:
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