Index Range Note

A note with a coupon determined largely or entirely by an embedded range accumulation option. Equity indexes, currency exchange rates and interest rates are among the underlying indexes, prices or rates that can determine the payoff. Index range notes are used primarily to enhance interest rate yields when an investor has confidence in a forecast. LIBOR Range Notes are the most common variety. Also called Accretion Bond Index Range Note, Corridor Bond or Note, Range Floater, Range Accrual Note, Accrual Note, LIBOR Range Note, Range Accumulation Note, Fairway Bond. See also Binary Swap, Range Accumulation Option or Warrant, Equity Range Note (diagram).