Variable rate demand obligation (VRDO)

Variable rate demand obligation (VRDO),

Definition of Variable rate demand obligation (VRDO):

  1. Debt security which bears interest at a floating (variable) rate adjusted at specified intervals (such as daily, weekly, or monthly) and can be redeemed at its holders option when the rate changes. Also called low floater, variable rate demand note, or variable rate demand bond.

Meaning of Variable rate demand obligation (VRDO) & Variable rate demand obligation (VRDO) Definition