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term:

Strip

strip n

pl: STRIPs
[separate trading of registered interest and principal of securities]
: a Treasury security that entitles the investor usually to payment of interest or principal exclusively and that is registered in a Federal Reserve bank under a federal program that provides for such separate trading of the components of U.S. Treasury obligations compare zero-coupon bond at bond

Source: Merriam-Webster’s Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.
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