A bond (a floating rate note) with a coupon that depends on two different floating-rate indexes. Typically, this bond pays an above-market fixed-rate coupon for a specific period of time, then it turns into paying dual-index floating coupons. For example, a 5-year dual-index floater may be structured to pay a 5% coupon in its first year, and thereafter, in year 2-5, it pays the difference between 10-year CMS rate and 6-month LIBOR plus 60 basis points, with its coupon having a minimum value of zero.

A dual-index floating-rate note is also referred to as a dual-index floater (dual-index FRN).