Which security type offers investors a stated maturity date, a floating interest rate, and the option to put it back to a financial intermediary?

Variable rate demand notes are a type of short-term debt security that provides several unique features beneficial to investors.

One of the primary characteristics is the stated maturity date, which means that the note will mature on a specific date as agreed upon at the time of issuance. In addition, these securities offer a floating interest rate that adjusts at regular intervals based on a specified benchmark, typically linked to a short-term interest rate index. This floating nature of the interest rate allows investors to benefit from rising interest rates.

Another key characteristic is the put feature, which gives investors the option to "put" (sell) the note back to the financial intermediary at predetermined times, often at par value. This feature provides investors with liquidity and the flexibility to return the security to the issuer prior to its maturity date, which is particularly valuable if interest rates rise or if the investor needs access to their funds.

Thus, the combination of a stated maturity date, a floating interest rate, and the put option makes variable rate demand notes a specific and attractive investment choice for investors looking for reduced interest rate risk along with liquidity options.