Capped FRN - Financial definition Tags: interest rate instruments type of Concise definition of the term capped FRN A capped FRN is a floating-rate note with a ceiling on the maximum interest payable. Additional information related to this definition Definition of related term Floating-rate note Browse the financial glossary in alphabetical order # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z