variable-rate note

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Variable-Rate Note

A bond with an interest rate that changes periodically. 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 variable-rate notes have maximum and minimum interest rates, known as capped notes and floored notes, respectively. A variable-rate note with both a maximum and a minimum interest rate is called a collared note. In the United States, government sponsored enterprises issue most variable-rate notes, while banks do the same in Europe. See also: Adjustable-rate mortgage.

variable-rate note

See floating-rate note.
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References in periodicals archive ?
These may include the redemption of its senior variable-rate notes due 21 June 2012 or the redemption of the balance of the series D preferred shares held by the US Treasury.
-Deutsche Bank Securities to run Zions Bancorporation's USD200m debt offer
The variable-rate notes, issued last Thursday, mature in 2013 and benefit from an unconditional and irrevocable guarantee by the Danish government that ensures timely payment of interest and principal.
S&P assigns top rating on Danish Vestjysk Bank's USD500m notes on state guarantee
Axis Bank last sold dollar bonds in June 2007 when it raised USD60m from variable-rate notes that are due in 2022.
Axis Bank to offer dollar bonds
Ramaswamy and Sundaresan (RS) (1986) extend the earlier work by Cox, Ingersoll, and Ross (CIR) (1980) to develop models for the valuation of variable-rate notes incorporating coupon-averaging formulae and different contractual features that are normally observed in corporate floaters.
Default risk, firm characteristics, and the valuation of variable-rate debt instruments
200,000,000 secured variable-rate notes at 'Asf'; Outlook Stable.
Fitch Affirms Signum Finance Cayman Limited Series 2010-09
1m) in variable-rate notes due on 20 March 2016, Reuters reported.
-Wuestenrot Bank sells EUR50m notes
The UK-based building society placed the variable-rate notes at par with a discount margin of three month-Libor plus 175 basis points.
-C Suisse, HSBC, RBC run Yorkshire's GBP500m note sale
5m) variable-rate notes maturing on 1 April 2015, Reuters reported.
-Westpac sells CHF275m of 3-yr bonds
5m) variable-rate notes at 130 basis points over BBSW.
-National Australia Bank sets price on AUD800m debt issue
200,000,000 secured variable-rate notes due 2025 at 'A+sf'; Outlook to Stable from Negative.
Fitch Affirms Signum Finance Cayman Limited Series 2010-09
Specifically, the Turkish lender has empowered its board to issue a TRY550m bank bond due 29 May 2012 and variable-rate notes worth TRY150m maturing on 27 November 2013.
-Turkish Isbank to sell TRY700m debt due 2012, 2013
1bn) of variable-rate notes, according to Thomson Reuters agency IFR.
-Bank of America issues USD1.5bn floating-rate notes at par

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