A floating rate note that can be called by the issuer before maturity date. In other words, It is a floating rate note with a call option (embedded call provision) that gives the right to the issuer to redeem the note (bond) in a situation where interest rates move down, whereby negatively impacting the reference rate or required margin.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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