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Derivatives




Callable Floating Rate Note


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.



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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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