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.
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.
In Contrast With
An interest rate which is set at the time a bond is issued and which does not vary during the term of the bond.