C
Capped Floating Rate Note
C
Capped Floating Rate Note
A floating rate note whose maximum rate is fixed in terms of the
reference index rate
, holding the issuer's
interest
payment down in a high rate environment. The
premium
from the cap increases the effective
yield
at rates below the
cap rate
plus the premium. See also
Participating Capped Floating Rate Note
.
Glossary
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C