Floating rate note definition

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Floating rate note

Floating rate note logo #21000 Floating rate notes (FRNs) are bonds that have a variable coupon, equal to a money market reference rate, like LIBOR or federal funds rate, plus a quoted spread (a.k.a. quoted margin). The spread is a rate that remains constant. Almost all FRNs have quarterly coupons, i.e. they pay out interest every three months. At the beginning of each coupon p...
Found on http://en.wikipedia.org/wiki/Floating_rate_note
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