bond-basics

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

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.


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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Issuer

A state, political subdivision, agency or authority that borrows money through the sale of bonds or other securities.