The separated principal from the bond, known as the residue, becomes a zero-coupon bond that matures to face value. Even ...

By becoming a Strips, the $10,000 face value of the bond is separated and sold as a single zero-coupon bond. An investor might purchase this principal Strips at a price lower than $10,000 ...

Suppose you have a choice of purchasing between a Rs 10,000 bond of XYZ company that pays a 5% coupon and matures in the next 90 days and a Rs 10,000 zero-coupon bond. The current price of the ...