An equity range accrual note is a principal-protected note that pays out a series of coupons based on the performance of an underlying stock, index, or basket of assets. The holder receives these coupons on a set of scheduled payment dates, but only if the value of the underlying asset on that date is between a lower and upper threshold. More specifically, at each observation date, a coupon is accrued and added to the total accrued coupon for that period. When a coupon determination date is reached the total accrued coupon is paid and is reset to zero for the next period. As such, the coupons are effectively a series of digital-style options that pays a fixed amount when the asset price is within the specified range.