A(n)________ is only used to calculate coupon payments on a swap but is never actually paid.
A)standard loan
B)floating loan
C)amortization
D)notional principal
E)swap valuator

Question

Quizplus · Accepted Answer

The notional principal is the amount of principal that the swap is based on, which is used to calculate coupon payments between the two parties. It is never actually paid, but it determines the size of the payments. Choices A, B, C, and E do not accurately describe the concept being described.

A(n)________ Is Only Used to Calculate Coupon Payments on a Swap