variable rate
Definition
Any interest rate or dividend that changes on a periodic basis. Variable rates are often used for convertibles, mortgages, and certain other kinds of loans. The change is usually tied to movement of an outside indicator, such as the prime interest rate. Movement above or below certain levels is often prevented by a predetermined floor and ceiling for a given rate. also called adjustable rate.
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Related terms:
universal life, Series I Bond
'variable rate' appears in these other terms:
variable rate certificate
'variable rate' appears in the definitions of these other terms on BusinessDictionary.com: variable rate demand obligation (VRDO), depository institution, low floater, variable rate demand bond (VRDB), variable rate demand note (VRDN), and 
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