Variable-Rate Note

Business, Legal & Accounting Glossary

Definition: Variable-Rate Note


Variable-Rate Note

Quick Summary of Variable-Rate Note


A bond, typically with a fixed maturity, of which the interest coupon is adjusted at regular intervals to reflect the prevailing market rate.




What is the dictionary definition of Variable-Rate Note?

Dictionary Definition


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.


Full Definition of Variable-Rate Note


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.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/variable-rate-note/
Modern Language Association (MLA):
Variable-Rate Note. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 19, 2024 https://payrollheaven.com/define/variable-rate-note/.
Chicago Manual of Style (CMS):
Variable-Rate Note. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/variable-rate-note/ (accessed: March 19, 2024).
American Psychological Association (APA):
Variable-Rate Note. PayrollHeaven.com. Retrieved March 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/variable-rate-note/

Definition Sources


Definitions for Variable-Rate Note are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.