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An rate, usually interest or exchange values,that moves up and down with the rest of the market or along with an index - sometimes called a variable interest rate because it can vary over the duration of the term. This contrasts with a fixed rate.

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floating rate

Investors were cautious about the bond because its floating rate could rise sharply if interest markets heated up.

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Investors were cautious about the bond because its floating rate could rise sharply if interest markets heated up.

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