Loan Strip

There's the principal that's due in 10 years. That part gets stripped off, and investors can buy the promised delivery of that $10,000 in 10 years for $5,832 today.

It's essentially a zero coupon bond, stripped off from a conventional bond. That's Part A.

Then you have Part B, which is the stream of 20 semi-annual payments of 40 bucks, paying 8% a year in interest. That flow or stream of capital or income flow has been stripped off, and now investors can buy that flow separately. That's 20 payments of 40 bucks, or 800 bucks in total paid over a decade.

What's it worth? Maybe 500 bucks or so? Eh. It's a strip anyway and sounds cool.