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(1) An open-ended debt obligation which resets every few years to a new interest rate based on negotiations between the issuer and the investor. At each renegotiation date, the investor has the option to put the notes back to the issuer if the new rate the issuer proposes is unacceptable. (2) A combination of a traditional bond or note and an embedded option which gives the issuer or the holder the right to terminate or to extend the maturity of the note at a prespecified interest rate on one or more exercise dates. Compare to Retractable Note.
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