A Capped Floating-Rate Note (Capped FRN) is a type of bond that features an interest rate that fluctuates with market levels but has an upper limit or 'cap' to protect issuers against excessive interest rate rises.
A Floating-Rate Note (FRN) is a type of bond with a variable interest rate, often based on the London Interbank Offered Rate (LIBOR), adjusting periodically to reflect market conditions.
A Variable-Rate Note (VRN) is a type of bond with adjustable interest coupons set at regular intervals, reflecting the prevailing market rates.
