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   Floating Rate Note (FRN)
   















 

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Floating Rate Note (FRN)

A fixed principal instrument, often utilized as the basis for a swap, which has a long or even indefinite life and whose yield is reset periodically relative to a reference index rate to reflect changes in short- or intermediate-term interest rates. Also called Adjustable Rate Instrument, Adjustable Rate Note. See also Reverse Floating Rate Note (diagram), Participating Capped Floating Rate Note, Leveraged Reverse Floating Rate Note.

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