Capped FRN: Difference between revisions
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* [[Floating rate note]] | * [[Floating rate note]] | ||
* [[Issue]] | * [[Issue]] | ||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 18:04, 27 June 2022
A floating rate note (FRN) issue with an upper limit on the coupon rate.
Under this type of issue, the lender forgoes the possibility of receiving a return above the cap rate should the market interest rate exceed the cap rate.
