After Connery's initial departure, editor-turned-director Peter Hunt stripped Bond
of his excesses and explored his humanity in "On Her Majesty's Secret Service," the most personal and tragic 007 adventure.
0025) of the amount so payable multiplied by the full number of years from the date the stripped bond
or coupon was purchased to final maturity.
If a strip is called before maturity--which is more likely to occur when interest rates have fallen--the investor will generally not be able to reinvest the proceeds at the yield to maturity he enjoyed on the stripped bond
The debt instrument is a stripped bond
or a stripped coupon.
3) Discount must also be included in income as it accrues on a stripped bond
or stripped coupon held by the person who stripped the bond or coupon or by a person whose basis is determined by reference to the basis in the hands of the person who stripped the bond or coupon (e.
1286 treats the holder of a stripped bond
(or coupon) as if the holder purchased a newly issued debt instrument with OID.
91-49 provided a simplified method of reporting gain for loan sales when the annual stated rate of interest payable on the stripped bond
is no more than 100 basis points lower than the annual stated rate of interest payable on the original loan.
This means that cost basis for trades in physical certificates, foreign currency debt, foreign debt, convertible bonds, stripped bonds
, payment-in-kind bonds, bonds with more than one rate and some private issues will now be reported to the IRS.
91-46 indicated that amounts received under a mortgage-servicing contract were interest payments for stripped bonds
if (1) the amounts exceeded reasonable compensation for services and (2) the mortgages were sold at the time the mortgage-servicing contract was entered into.