Famous Floating Rate Bonds References. Web a floating rate note (frn), sometimes called a floating rate bond, is a security that pays interest or a coupon linked to a variable benchmark. Most bonds carry a fixed coupon interest rate.
Web spreads, or the added interest rate demanded for corporate debt over safe treasury bonds, have fallen for both assets. Like other bonds, they have known maturity dates and sometimes a call date when they can be repaid early, but unlike fixed rate bonds where income is absolutely certain, income on a frn varies. Most bonds carry a fixed coupon interest rate.