Interest Rate
The rate expressed as a percentage of the principal amount of a bond used to determine the amount of interest to be paid by the issuer or the borrower.
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Variable Interest Rate
The Interest Rate on a Bond which varies according to a formula set forth in the Bond or the Indenture or Bond Resolution/Ordinance or based on the Interest Rate required by a remarketing agent to remarket the Bonds at Par.
See Also
In Contrast With
Fixed Interest Rate
An interest rate which is set at the time a bond is issued and which does not vary during the term of the bond.
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Borrower
The party, often called a conduit borrower or conduit obligor, borrowing bond proceeds from the issuer and, in such case, is responsible for making interest payments and repaying principal of the bonds as it becomes due.