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.
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
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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Term of the Week
Pre-Closing
A meeting of all the parties prior to the closing, often held the day before the closing.