A%20security%20based%20solely%20on%20the%20interest%20payments%20form%20a%20pool%20of%20mortgages,%20Treasury%20bonds,%20or%20other%20bonds.%20Once%20the%20principal%20on%20the%20mortgages%20or%20bonds%20has%20been%20repaid,%20interest%20payments%20stop%20and%20the%20value%20of%20the%20IO%20falls%20to%20zero. | EUdict

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A security based solely on the interest payments form a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop and the value of the IO falls to zero.

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