Definition for : Reference rate

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 Chapter 21 Other debt products and Chapter 22 Shares of the Vernimmen)

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