Filter by Categories
Accounting
Banking

Finance




Callable Floating Rate Note


A callable note that pays a floating rate coupon for its entire tenor. It allows the issuer to early terminate (premature or early termination) the note at specific point in time over its tenor. The investor will get 100% of notional (full face value of the note). In return for this option given to the issuer, the investor receives an above-market interest rate (higher yields).

For example, a callable note could have a 2-year tenor and a 1% +LIBOR coupon where the issuer can early terminate the note after 6 months since issue date, and semiannually thereafter (Bermudan call).



ABC
Finance, as a field of knowledge, is substantially wide-ranging and virtually encompasses everything in the realm of corporate finance, financial management, ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*