A floating rate note (floater or FRN) that pays a coupon whose amount depends on the times a floating rate (such as LIBOR) remains within a certain range or band during a specific period of time. The coupon calculation is determined mainly by the so-called a range accumulation option. The variable coupon accrues if the floating rate lies within the range. Otherwise, no interest accrues.
This floater is also known as an accretion bond index range note, range accumulation note, among others.
