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Targeted Accrual Redemption Note (TARN)


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Stay beautiful stay off drugs -Johnny Wowk AKA Johnny The Walker

— Johnny Wowk

A targeted accrual redemption note is an exotic derivative that terminates when a limit on coupon payments to the holder is reached. Target accrual redemption notes (TARN) have the distinguishing feature of being subject to early termination. If the accumulation of coupons reaches a predetermined amount before the settlement date, the holder of the note receives a final payment of the par value and the contract ends.


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