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FLOATING RATE BONDS AND NOTES

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▪Floating rate Bonds are bonds that have variable interest rate and the rate of interest is subject to change as per the market conditions. 

▪The floating rate bonds take reference from money market like MIBOR & LIBOR.

▪This kind of instrument does not give fixed rate of interest and is allowed to float the rate subject to the market conditions. 

▪This instrument is used by the issuers to hedge themselves against the volatility in interest rates.

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