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Adjustable Rate

Definition: Interest rate that may be adjusted up or down and is usually pegged to the U.S. Treasury bill or prime interest rate. The adjustable rate generally has a one year and a lifetime cap on it so the borrDefinition: ower may know the maximum increase within a short period or for the duration of the loan. Definition: [crh] Applies mainly to convertible securities. Refers to interest rate or dividend that is adDefinition: justed periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. Typically, such issues have a set floor or ceiling, called caps and collars that limits the adjustment.

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