Floating-rate bond
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Floating-rate bond is a bond whose coupon payment may vary over time. The coupon rate is usually linked to the rate on some other security, such as a Treasury security, or to some other rate, such as the prime rate or LIBOR.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Floating-rate bond. A bond whose coupon payment may vary over time. The coupon rate is usually linked to the rate on some other security, such as a Treasury security, or to some other rate, such as the prime rate or LIBOR.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
