Definition for : Reference rate
GLOSSARY LETTER
The reference rate is the observable Market rate for Benchmark funds, used for the Coupon rate calculation in all debt securities with a changing Coupon rate (see also Floating-rate debt security). Most commonly used reference rates are EONIA, LIBOR, EURIBOR, and the Interest rate Swap rate.
(See Chapters 21 and 22 of the Vernimmen)
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