: 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
For official details on how these securities are managed, you can visit the TreasuryDirect STRIPS page . matures strips
: Investors use STRIPS to match the maturity date exactly with a future financial obligation. : Even though no cash interest is paid