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Glossary Term: FLOATING-RATE BOND

Definition(s) for FLOATING-RATE BOND:


1. ) refers to a bond for which the interest rate is adjusted periodically according to a predetermined formula, commonly linked to an index.

2. ) Bond having a coupon that changes periodically based upon changes in another, usually short-term, interest rate, such as Treasury bills or LIBOR (London Inter-dealer Broker Overnight Rate)



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