What is FLOATING RATE NOTE (FRN)?

ADEBT obligation with a final maturity of 1 to 15 years that pays a monthly quarterly semiannual, or annual COUPON based on a floating INTEREST RATE reference, often LIBOR or EURIBOR. Floating rate notes can be issued directly or from MEDIUMTERM NOTE or EURO MEDIUMTERM NOTE programs, and may be sold as REGISTERED SECURITIES, BEARER SECURITIES, or PRIVATE PLACEMENTS in a range of currencies. FRNs are periodically issued as STRUCTURED NOTES such as RANGE FRNs, RANGE KNOCKOUT FRNs, and INVERSE FRNs. Also known as FLOATER. See also FIXED RATE BOND, PERPETUAL FLOATING RATE NOTE.

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