A floored floating rate note which is also capped: the coupon of the floating rate note cannot increase beyond the cap rate. In other words, the floating rate note pays a floating coupon which is subject to a maximum and minimum coupon level, irrespective of the where the underlying rate sets.

Other variations include stepped capped floating rate notes and stepped floored floating rate notes, in which the capped coupon/ floored coupon vary over the life of the note/ bond.