Matures Strips -

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

In financial markets, "matures" refers to the date a bond's principal is repaid, while stands for Separate Trading of Registered Interest and Principal of Securities . This process allows investors to treat the individual components of a Treasury bond as standalone investments. Core Concept of STRIPS matures strips

: 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 : They can be used to build "bond

: Each strip "matures" on the date the original payment was scheduled to occur. Investment Characteristics matures strips