Matures Strips [UPDATED]

For official details on how these securities are managed, you can visit the TreasuryDirect STRIPS page .

: Investors use STRIPS to match the maturity date exactly with a future financial obligation. matures strips

: Each strip "matures" on the date the original payment was scheduled to occur. Investment Characteristics For official details on how these securities are

: Even though no cash interest is paid until maturity, the annual increase in the strip's value is often taxed as "phantom income" unless held in a tax-deferred account like an IRA. Strategic Use Cases Investment Characteristics : Even though no cash interest

: They can be used to build "bond ladders," where different strips mature at regular intervals to provide steady cash flow.

: Each resulting strip becomes a zero-coupon bond , meaning it does not pay periodic interest but is instead sold at a deep discount to its face value.