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.

BREAKING DOWN '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.

  1. Bunny Bond

    A type of bond that offers investors the option to reinvest coupon ...
  2. Reinvestment Risk

    The risk that future coupons from a bond will not be reinvested ...
  3. Treasury Bill - T-Bill

    A Treasury Bill (T-Bill) is a short-term debt obligation backed ...
  4. Coupon Equivalent Rate - CER

    A alternative calculation of coupon rate used to compare zero-coupon ...
  5. Coupon Pass

    The purchase of treasury notes or bonds from dealers, by the ...
  6. Zero-Coupon Mortgage

    A form of commercial financing in which regular interest and ...
Related Articles
  1. Investing

    Comparing Yield To Maturity And The Coupon Rate

    Investors base investing decisions and strategies on yield to maturity more so than coupon rates.
  2. Investing

    The Basics Of The T-Bill

    The U.S. government has two primary methods of raising capital. One is by taxing individuals, businesses, trusts and estates; and the other is by issuing fixed-income securities that are backed ...
  3. Personal Finance

    Couponing 101: Dos and Don'ts

    Coupon clipping isn't new, but it has gone digital. Find out how to use coupons to your advantage today.
  4. Investing

    How Do I Calculate Yield To Maturity Of A Zero Coupon Bond?

    Yield to maturity is a basic investing concept used by investors to compare bonds of different coupons and times until maturity.
  5. Investing

    Simple Math for Fixed-Coupon Corporate Bonds

    A guide to help to understand the simple math behind fixed-coupon corporate bonds.
  6. Personal Finance

    Is Coupon Clipping A Waste Of Time?

    Coupons reduce the cost of a product or service, but are the savings really worth the time it takes?
  7. Personal Finance

    The Top 6 Online Coupons And How To Use Them

    Learn the basics of couponing so that you can get creative with your savings strategy and evolve beyond the basic coupon book.
  8. Investing

    Introduction to Treasury Securities

    Purchasing Treasury securities backed by the U.S. government – and knowing their characteristics – can provide a steady guaranteed income and peace of mind.
  1. How does a bond's coupon interest rate affect its price?

    Find out why the difference between the coupon interest rate on a bond and prevailing market interest rates has a large impact ... Read Answer >>
  2. When is a bond's coupon rate and yield to maturity the same?

    Find out when a bond's yield to maturity is equal to its coupon rate, and learn about the components of bonds and how they ... Read Answer >>
  3. How do I calculate yield to maturity in Excel?

    Learn how to calculate a bond's yield to maturity in Microsoft Excel, which is one of the best methods of comparing bonds ... Read Answer >>
Hot Definitions
  1. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  2. Liquidity

    Liquidity is the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's ...
  3. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  4. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  5. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  6. Entrepreneur

    An entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture.
Trading Center