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▸ noun: (finance) A component of an interest rate cap, a derivative instrument that effectively prevents the interest payments on an otherwise variable-rate loan from exceeding an agreed level (the "cap"). Each "caplet", analysable as a call option, covers one interest accrual period (such as three months); the whole interest rate cap is made up of a series of consecutive caplets.
Similar:
konseal,
caps.,
capsule,
capette,
capul,
capel,
capcase,
cervical cap,
cusplet,
capillation,
more...
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