Define: Variable-Rate Note

UK Accounting Glossary

Definition: 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.


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https://payrollheaven.com/define/variable-rate-note/
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Variable-Rate Note. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 20, 2019 https://payrollheaven.com/define/variable-rate-note/.
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Variable-Rate Note. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/variable-rate-note/ (accessed: September 20, 2019).
American Psychological Association (APA):
Variable-Rate Note. PayrollHeaven.com. Retrieved September 20, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/variable-rate-note/

Definition Sources


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This glossary post was last updated: 5th May 2019.