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Increasing Rate Notes (IRNs)
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Debt obligations on which the coupon rate increases by predetermined amounts or to predetermined levels at specified time intervals. An increasing rate structure can be used to defer a portion of interest expense to later years or, when used in connection with a bridge loan, to compensate investors for increasing risk associated with the issuer's delay in redeeming the notes through refinancing or from the proceeds of asset sales. See Callable Step-Up Note.
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Glossary *
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