A range note that pays an increased floating range coupon if the floating rate (e.g., LIBOR) fixes within a prespecified range. However, if the floating rate falls outside the range, the holder receives a minimum fixed coupon. In this sense, the note allows investors to enhance their returns based on interest rate performance with respect to a specific range while offering contingent protection against undesired performance (outside the range).

It belongs to the class of barrier notes.