A note giving an investor a better coupon interest rate. If the interest rate falls outside the agreed upon range the investor loses the interest that day. AKA accrual note, day count note, and range floater. Refer to capped, inverse, perpetual and range
Link to This DefinitionDid you find this definition of RANGE FLOATING RATE NOTE (FRN) helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary