The Treasury STRIPS—Separate Trading of Registered Interest and Principal of Securities—are treasury bonds in which only the par value is being sold and the coupons have been stripped (stripped). As a result, STRIPS acts like a zero-coupon bond.
6.80 is the yield until maturity.
A zero-coupon bond with similar characteristics would yield the same amount to maturity as the STRIPS.
U.S. bonds known as Treasury STRIPS are issued at a discount to their face value and mature for their full face value.The principal and coupon payments of STRIPS are treasury bonds that trade as separate securities.Holders of STRIPS only receive the final payment on the maturity date, not any coupon payments.
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