Notional principal amount

Notional principal amount
In an interest rate swap, the predetermined dollar principal on which the exchanged interest payments are based. ...

Notional Principal Amount: the proposed amount which interest rate swap payments are based but generally not paid or received by either party.

A swap whereby the notional principal amount of the agreement is amortized according to the movement of an underlying rate.
Also known as "indexed principal swap." ...

[Harvey] accreting swap A swap with a notional principal amount which decreases over time. [TMAC] accretion of discount A straight-line accumulation of capital gains on discount bonds in anticipation of being paid par at maturity.

income in the current year. More details of the definitions for investors other that individuals are found in Regulation D of the Securities and Exchange Commission. Accreting Swap) An interest rate swap in which the notional principal amount ...

notional See notional principal amount. notional principal amount In the context of an interest rate swap, the specified amounts on which the exchanged interest payments are based.

contract in which two counter-parties agree to exchange interest payments of differing character based on an underlying notional principal amount that is never exchanged.

A binding agreement between counterparties to exchange periodic interest payments on some predetermined dollar principal, which is called the notional principal amount.

Index Amortizing Swap
A swap whereby the notional principal amount of the agreement is amortized according to the movement of an underlying rate.
Notes:
Index amortizing swaps could be based on LIBOR or mortgage interest rates.

ACCRETING SWAP) - An interest rate swap in which the notional principal amount increases over time, for...
ACCRETION - The increase or addition of land by the deposit of sand or soil washed up naturally from a ...

A swap is a derivative in which two parties agree to exchange a set of cash flows (or leg) for another set. A notional principal amount is used to calculate each cash flow; these are rarely exchanged by the parties.

Here, two counterparties "swap" obligations, effectively exchanging cash flow streams calculated against a notional principal amount, ...

Interest rate swap
A binding agreement between counterparties to exchange periodic interest payments on some predetermined dollar principal, which is called the notional principal amount. For example, one party will pay fixed and receive variable.

or each of the amounts (in a currency swap) to which interest rates are applied (whether or not expressed as a rate or stated on a coupon basis) in order to calculate periodic payment obligations. Also called the notional principal amount, ...

Return A tax return that is filed subsequently to the original return and filed within the filing period (including extensions). Swap A financial derivative where two parties exchange payments based upon a notional principal amount.

SWAP -- Derivative financial instrument in which two parties agree to exchange payments calculated by reference to a notional principal amount.

See also: Interest rate swap, Banks, Net present value, Funding, Substitution