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Capped Floating Rate Note |
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Capped Floating Rate Note A variable-rate note with a maximum interest rate that the variable rate cannot exceed. For example, a variable-rate note may have a cap stating that the rate will not exceed 9% even if the formula used to calculate the interest rate would have it do so. A capped rate reduces the risk to the issuer of the note. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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