Interest Rate
The rate expressed as a percentage of the principal amount of a bond used to determine the amount of interest to be paid by the issuer or the borrower.
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Variable Interest Rate
The Interest Rate on a Bond which varies according to a formula set forth in the Bond or the Indenture or Bond Resolution/Ordinance or based on the Interest Rate required by a remarketing agent to remarket the Bonds at Par.
See Also
In Contrast With
Fixed Interest Rate
An interest rate which is set at the time a bond is issued and which does not vary during the term of the bond.
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Blue Sky Laws
State securities laws, which regulate the offering of securities. Although these laws vary from state to state, most contain provisions concerning (a) prohibitions against fraud; (b) regulation of brokers and dealers doing business in the state; and (c) registration of Securities.