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Generally, taxes are due for the interest earned each year, even though there is no cash payment until maturity or when the STRIPS are sold. All 21 securities are distinct and trade in the market. Bonds are often viewed as stocks' less-glamorous sidekick, but they deserve more respect from investors. Backed by the U. Learn how a fixed-income portfolio works. Assuming it originally pays coupons semi-annually, 21 zero-coupon bonds can be created.