An interest rate swap agreement indicates the ____ value, which represents the principal amount to which interest rates are applied to determine the interest payments involved.

Question

Quizplus · Accepted Answer

The correct term is "notional value," which refers to the principal amount in an interest rate swap agreement that the interest rates are applied to in order to calculate the interest payments, but which is not actually exchanged between the parties.

An Interest Rate Swap Agreement Indicates the ____ Value, Which