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Floating Rate Bond
A type of bond whose interest payments vary with changes in market interest rates, also known as a floater or variable rate bond.
Variable Amount
A sum that can change over time or depending on conditions, in contrast to a fixed amount.
Coupon Interest
The fixed interest rate paid by a bond, typically annually or semi-annually.
Junk
A colloquial term for assets or securities that are of low quality, often associated with high risk and potential high return.
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