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.
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.