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Notional Principal Amount

   Also found in: Acronyms, Wikipedia 0.03 sec.
Notional Principal Amount
In an interest rate swap, the predetermined dollar amount on which the exchanged interest payments are based.

Notes:
Each period's rates are multiplied by the notional principal amount to determine the value of each counterparty's payment.


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

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