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   Adjustable Rate Instrument
   















 

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Adjustable Rate Instrument

Any of a wide variety of fixed principal obligations whose periodic payout is set relative to a reference index rate (such as LIBOR) to create a longer-term fixed principal obligation with a floating rate interim cost. Also called Adjustable Rate Note. See, for example, Adjustable Rate Preferred Stock (ARPS), Floating Rate Note (FRN).

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