cap


Definition 1
The highest interest rate that can be paid on a floating-rate bond, or the highest rate that an adjustable rate mortgage can rise to in a specified period of time.

Definition 2
An abbreviation for capitalization, as in market cap.

Related Terms

capped-style option -  More

interest rate cap -

lifetime cap -

Mentioned in these terms

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... part of the Bonds, Lending & Credit and Real Estate subjects.

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