The advantage of a strip bond to an investor is that the annual increase in the bond is taxable as ordinary income.

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The advantage of a strip bond to an investor is that it allows them to purchase a bond at a discount and receive the full face value at maturity, without receiving any periodic interest payments that would be taxable as ordinary income. Instead, the increase in value over time is treated as capital gains, which may have tax advantages depending on the investor's situation.

The Advantage of a Strip Bond to an Investor Is