A stripped bond is a bondA bond is a security issued by governments and companies through which an investor lends money to the issuer.
In general, the government or company promises to pay the investor interest at a fixed rate and at certain intervals (for example, 2% per year). Interest is normally paid twice a year. At maturity, the government or company pays back a predetermined amount that is called the face value. The face value is usually $1,000.
There are several types of bonds:
Stripped bondReal return bondConvertible bondSavings bondRetractable bondUnsecured bondEtc. on which no interest is paid.

The investor earns a return by purchasing the bond at a lower price than the price paid at maturity. For example, the investor can pay $750 for a bond with a value of $1,000 at maturity.

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