The collar of a floating-rate bond refers to the minimum and maximum:

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The collar of a floating-rate bond refers to the minimum and maximum coupon rates that are paid to the bondholder. These rates are typically expressed as a percentage above or below a benchmark rate, such as the LIBOR or prime rate. The collar is designed to protect both the issuer and the investor from extreme interest rate movements. If interest rates rise sharply, the collar prevents the coupon from rising above a certain level, which helps to control the issuer's borrowing costs. Conversely, if interest rates fall sharply, the collar prevents the coupon from falling below a certain level, which helps to protect the investor's income stream.

The Collar of a Floating-Rate Bond Refers to the Minimum