Stripped coupons and residuals

With a higher guaranteed return than GICs, a stripped coupon is an interest coupon that has been stripped from a bond and sold separately on the secondary market. The residual bond is what is left of the bond after the coupons have been detached. The investor receives the face value of the bond at maturity. This very secure investment vehicle must be kept until maturity. There are no transaction fees.

Features

• Low risk level
• Sold in any dollar amount (minimum purchase of $10,000)
• Payable within three business days of the transaction
• Purchased at a discount
• No accrued interest to pay, no interest payments
• Negotiable at any time at market price