A note with a variable interest rate. Adjustments to the interest rate are usually made every 6 months and are tied to a certain money-market index. These protect investors against a rise in interest rates, but carry lower yields than fixed notes of the same maturity
Floating Rate Notes (FRNs) are bonds with interest payment rates - the coupon rate - linked to a money market index. The coupon rate is pegged to a benchmark floating rate, commonly Libor. Payments are refixed quarterly to three-month Libor or semi-annually to six-month Libor.
a note whose interest payment is dependent upon a certain reference rate
A security whose rate of interest or return adjusts or floats, based on other agreed-upon structure.
Debt instruments that bear a variable rate of interest. Coupons are linked to a floating interest rate index, and pay out at a predetermined yield spread to the index.
Bonds with variable coupon. The coupon is re-negotiated at the date of each payment.
Bonds whose coupon is not fixed, but variable.