Business, Legal & Accounting Glossary
A bond, typically with a fixed maturity, of which the interest coupon is adjusted at regular intervals to reflect the prevailing market rate.
A Variable rate note (VRN) is a bond, typically with a fixed maturity, of which the interest coupon is adjusted at regular intervals to reflect the prevailing market rate (typically a margin over the London Inter-Bank Offered Rate).
A VRN differs from a floating-rate note in that the margin is not fixed and it will be adjusted to take into account conditions of the market at each coupon setting date.
A renewable bond with an interest rate that adjusts periodically. US variable rate notes are mostly issued by government-sponsored enterprises, while banks issue variable rate notes in Europe.
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This glossary post was last updated: 21st November, 2021 | 0 Views.