floating-rate bond

Definition

Bond whose interest is pegged to a benchmark, such as the Treasury Bill rate, and adjusted periodically.

Use floating-rate bond in a sentence

You may want to take on a floating-rate bond if you think that it could be a good earner for you.

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I find floating-rate bonds to be more secure than municipal bonds though they may not carry as high of an interest rate.

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Our consultants from New York advised our company CEO that he should issue a floating-rate bond to take advantage of any fluctuations in interest rates.

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droplock bond debt-convertible bond