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Is floor rate

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Anonymous

9y ago
Updated: 8/6/2025

A floor rate is the minimum interest rate that can be charged on a loan or investment, below which the rate cannot fall. It is typically used in financial products like adjustable-rate mortgages or bonds to protect lenders or investors from declining interest rates. By establishing a floor rate, it ensures a certain level of return or revenue, even in low-interest environments.

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1mo ago

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