A resettable bond in which the rate (underlying interest rate) may reset at the end of a certain period during which the rate remains unchanged. The period falls within the lifespan of the bond, and can virtually be any part of it as long as the bond has not matured.

If the period extends to cover the bond’s lifespan, the bond remains a fixed rate bond. This is the situation when a bond contains inappropriate fallbacks that result in an outcome that was not perceived at the time the bond was issued.