Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of variable rate note

Definition of

variable rate note

Finance

note with interest rate linked to index a note whose interest rate is tied to an index, such as the prime rate in the United States or the London Interbank Offering Rate in the United Kingdom.

Related definitions of "variable rate note"

variable rate note - Related Articles

  • Credit Ratings

    Best Practice

    Credit rating agencies assign ratings to issuers, including corporations and governments, of debt securities, as well as to individual issues such as bonds, notes, commercial paper, and structured finance instruments. The agencies rate an issuer by analyzing the borrower’s ability and willingness
    By David Wyss

  • WACC versus APV Valuation: Financial Policy and the Discount Rate

    Best Practice

    Briefly, Proposition I states that the value of a firm does not depend on its capital structure, and Proposition II states that a firm’s value depends on three things: the required rate of return on its assets; its cost of debt; and its debt/equity ratio. Both valuation methodologies are equivalent
    By Antoine Hyafil

  • Managing Interest Rate Risk

    Best Practice

    Companies with debt charged at variable rates (for example, based on Libor, and also called floating rates) will be exposed to increases in interest rates, whereas companies whose borrowing costs are totally or partly fixed will be exposed to falls in interest rates. The reverse is obviously true
    By Will Spinney

  • Interest Rate Risk

    Key Concepts

    Interest rate risk represents the extent to which an asset or investment’s value could be influenced by movements in variable interest rates. Some investments carry greater direct exposure to interest rate risk than others; given their fixed rates of returns, bonds are more exposed to the impact of interest rate movements than equities, with the result than bond prices tend to move inversely relative to interest rates and inflation

More

Definitions of ’variable rate note’ and meaning of ’variable rate note’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’variable rate note’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top

Related

Most Viewed

Recommended

Latest

 
QFINANCE www.qfinance.com