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floating-rate note


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(FRN)

A eurobond with a floating-rate interest, usually based on the London Inter Bank Offered Rate. They first appeared in the 1970s and have a maturity of between 7 and 15 years. They are usually issued as negotiable bearer bonds. A perpetual FRN has no redemption. See also flip-flop FRN.

Subjects: Economics.


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