Series 79: Variable-Rate Bonds

Taken from our Series 79 Top-off Online Guide

Variable-Rate Bonds

Variable-rate bonds, also called floating-rate bonds, are bonds that do not pay a fixed coupon. Instead, the interest payments are benchmarked to another interest rate, such as the federal funds rate or LIBOR (the London Interbank Offered Rate). The bond pays a specified spread over the rate, and the payments adjust quarte

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