droplock bond

droplock bond definition - business

droplock bond

A floating-rate bond that automatically converts to a fixed-rate bond if the interest rate used to peg the floating rate falls to a predetermined level. The new fixed rate stays in place until the droplock bond reaches maturity.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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