A floating-rate note (FRN or floater) in which coupons are reset quarterly or semi-annually to the coupon on the newly issued thirty-year government bonds. In other words, the coupon of a floating rate on governments (FROG) is tied to the yield of current Treasury bonds in order to keep abreast with ongoing long-term market tendencies. These notes are typically used in yield curve swaps.
August 27, 2024
