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Separate Trading of Registered Interest and Principal Securities (STRIPS)
Separate Trading of Registered Interest and Principal of Securities
STRIPS, an acronym for separate trading of registered interest and principal of securities, are special issues of US Treasury zero-coupon bonds. They're created and sold by brokerage firms, not by the government.
The bonds are prestripped, which means that the issue is separated into the principal and a series of individual interest payments, and each of those parts is offered separately as a zero-coupon security.