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- 2011-7-11
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- 2013-9-12
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hi koba,
stripped securities don't make coupon payments. You might be getting confused by the term "coupon STRIPS": this means it was created from what was originally a coupon payment (as part of the original coupon-bearing Treasury).
However, it's now a zero-coupon security that pays investors a single amount (the size of the original coupon) at maturity.
Effectively, what was a coupon payment on the original treasury has become the principal on the stripped security.
cheers! |
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