A floating-rate note (FRN) that gives the bondholder the right to convert a note with a long maturity date or no maturity (no redemption date) into a note with a short maturity date. Furthermore, the bondholder has the right to convert back into the original note before the short-dated note reaches maturity. The short-dated note typically pays a lower spread over its floating rate (LIBOR) than the the long-dated note, but this is compensated for in the possibility of receiving principal repayment by the bondholder much earlier.

A flip-flop FRN is also known as a flip-flop floater.