variable coupon renewable note

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Variable Coupon Renewable Note

A debt security that matures every week with the principal automatically reinvested at a new interest rate. This process continues until the holder of the note asks the principal not to be reinvested. The interest rate is generally linked to the rate on a Treasury bill. It is also called a VCR note.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

variable coupon renewable note (VCR)

A renewable note on which interest is reset on a weekly basis according to a predetermined formula. A VCR continues to renew at quarterly intervals unless the owner directs the issuer to repay the principal.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.