Variable Coupon Renewable Note - VCR

AAA

DEFINITION of 'Variable Coupon Renewable Note - VCR'

A renewable fixed income security with variable coupon rates that are periodically reset. A Variable Coupon Renewable Note is a type of debt security with a weekly maturity. The principal of this security is reinvested automatically at new interest rates, every week it matures.

INVESTOPEDIA EXPLAINS 'Variable Coupon Renewable Note - VCR'

Usually the coupon is set on a weekly basis at a fixed spread over the T-bill rate. The security is reinvested automatically, continuously, until the owner of the security requests that the security is no longer reinvested. The initial rate of this security is linked to the T-bill rate, which is backed by the full faith and credit of the U.S. government. T-bills have a maturity of one year or less.

RELATED TERMS
  1. Maturity

    The period of time for which a financial instrument remains outstanding. ...
  2. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
  3. Treasury Note

    A marketable U.S. government debt security with a fixed interest ...
  4. Variable Rate Demand Note - VRDN

    A debt instrument that represents borrowed funds that are payable ...
  5. Coupon Bond

    A debt obligation with coupons attached that represent semiannual ...
  6. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic ...
Related Articles
  1. How To Create A Modern Fixed-Income ...
    Investing Basics

    How To Create A Modern Fixed-Income ...

  2. Introduction To Inflation-Protected ...
    Options & Futures

    Introduction To Inflation-Protected ...

  3. 5 Money-Saving Shopping Tips
    Options & Futures

    5 Money-Saving Shopping Tips

  4. Principal-Protected Investments: Risks, ...
    Options & Futures

    Principal-Protected Investments: Risks, ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center