WHAT'S NEW?

FINANCIAL MARKET COURSES

Floating Rate Notes

Floating rate notes are medium- to long-term debt instruments with a floating rate of interest that is reset periodically, based on a margin or spread over a reference rate. Compared with fixed rate securities, FRNs are less sensitive to interest rate fluctuations as their coupon moves in conjunction with underlying market rates.

 

This course will provide an overview of the basic structure and features of floating rate notes. It will also describe the various uses and applications of FRNs, variations of the basic FRN structure, and price/yield calculations.

  • OBJECTIVES

    On completion of this course you will be able to describe the structures and uses of:

    Outline the basic structure and features of FRNs

    Analyze various aspects of FRNs, including their pricing and yield calculations

  • COURSE OUTLINE

    Topic 1: Features of FRN

    Definition of FRN

    FRN Coupons

    Product Variations

    FRN Issuers

    Uses and Applications of FRNs

    Topic 2: Price/ Yield Considerations

    FRN Spread/Margins

    o Simple Margins

    o Discount Margin

    Price and Yield Calculations in FRNs

    o Straight Amortization Method

    o Discounting Method

    FRN Price Volatility

  • PREREQUISITE KNOWLEDGE

  • ESTIMATED COMPLETED TIME

    60 Minutes

Next Course

VIEW COURSE

INTERMEDIATE

Support

Accreditations

General: info@intuition.com

Accounts: ar@intuition.com

http://support.intuition.com

Intuition engages with over 30 accreditation bodies to ensure Know-How can be used for CPE credits. If your organization needs CPE from a body not listed below, contact us and we will endeavour to have them included.

© Copyright 2016 by Intuition. All Rights Reserved.