The ________ is the conceptual principal amount that controls the cash flows of an interest ate swap.

Question

Quizplus · Accepted Answer

The notional principal is the hypothetical or theoretical amount of money used as a basis for calculating the interest rate payments in an interest rate swap. It is not a real amount of money exchanged, but rather just a notional amount used to calculate payments. A, C, and D are not commonly used terms in relation to interest rate swaps.

The ________ Is the Conceptual Principal Amount That Controls the Cash