floating-rate note

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Related to Variable-Rate Bond: zero coupon bond

Floating-rate note (FRN)

Floating-Rate Note

A bond with a variable interest rate. These bonds typically have coupons renewable every three months and pay according to a set calculation. For example, a note may have an interest rate of "EURIBOR + 1%" and pay whatever the EURIBOR rate happens to be at the time plus 1%. Some FRNs have maximum and minimum interest rates, known as capped FRNs and floored FRNs, respectively. An FRN with both a maximum and a minimum interest rate is called a collared FRN. In the United States, government sponsored enterprises issue most FRNs while banks do the same in Europe. See also: Adjustable-rate mortgage.

floating-rate note

An unsecured debt issue with an interest rate that is reset at specified intervals (usually every six months) according to a predetermined formula. Floating-rate notes usually can be redeemed at face value on certain dates at the holder's option. Floating-rate notes pay short-term interest and generally sell in the secondary market at nearly par value. Floating-rate notes are indicated in bond transaction tables in newspapers by the symbol t. Also called floater, variable-rate note. See also convertible floating-rate note, droplock bond, variable-rate demand obligation, yield curve note.
References in periodicals archive ?
Interest on Variable-Rate Bonds purchased between 2009 and 2014 will be reset annually every June 21 until maturity.
trustees for the $63 million of variable-rate bonds, and certain fixed-rate bondholders.
Accordingly, the letters of credit will terminate on September 15, 2003 and as a result, the variable-rate bonds will be subject to mandatory purchase on September 10, 2003.
GO variable-rate bonds series 2005B2 (LOC: Societe Generale (SG))
The liquidity facility for the 2008 series C variable-rate bonds with BNP Paribas (rated 'AA/F1+' by Fitch) dated Aug.
As a result of the variable-rate refunding associated with the 2009 series A bonds, IHFA is replacing Lloyds TSB Bank plc (Lloyds) as liquidity provider on the 2005 series B variable-rate bonds, in the amount of $14.
The SBPA provides for payment of the purchase price of tendered bonds and is sized to cover the principal portion of the purchase price and 186 days of interest at a rate of 12% based on a 360-day year for the tax exempt variable-rate bonds.
The 2008 series D-1 class I variable-rate bonds (AMT) will be issued on June 26, 2008 with an initial fixed interest rate which extends to, but does not include, July 1, 2009 which is also the Initial Mandatory Tender Date.
The class I variable-rate bonds will be issued in a weekly interest rate mode but may be converted to a daily, monthly, quarterly, semiannual, auction- or fixed-rate mode.
The SBPA for the $27 million 2007K variable-rate bonds provides for payment of the purchase price of tendered bonds and is sized to cover the principal portion of the purchase price and initially 187 days of interest at a rate of 12% based on a 360-day year until July 1, 2008, the first payment date, and 186 days of interest thereafter.
75 million 2007H variable-rate bonds provides for payment of the purchase price of tendered bonds and is sized to cover the principal portion of the purchase price and 186 days of interest at a rate of 12% based on a 360-day year.
The SBPA for the $30 million 2007J variable-rate bonds provides for payment of the purchase price of tendered bonds and is sized to cover the principal portion of the purchase price and 186 days of interest at a rate of 12% based on a 360-day year.
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