Coupon Strips <Back to Last Page>     <Full Glossary>

Definition of Coupon Strips: A bond can be resold into two parts that can be thought of as components: (1) a principal component that is the right to receive the principal at the end date, and (2) the right to receive the coupon payments. The components are called strips. The right to receive coupon payments is the coupon strip. (Econterms)

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