Notional principal contract — The term notional principal contract (NPC) is a term of art used by U.S. federal income tax professionals for contracts based on an underlying notional amount (other financial services professionals refer to such NPCs under the more general… … Wikipedia
Notional Principal Amount — In an interest rate swap, the predetermined dollar amount on which the exchanged interest payments are based. Each period s rates are multiplied by the notional principal amount to determine the value of each counterparty s payment … Investment dictionary
notional principal — See notional amount. American Banker Glossary * * * The hypothetical amount on which interest payments are based in products such as interest rate swaps, forward rate agreements, caps and floors. ► See also Cap, FRA, Floor, Swap … Financial and business terms
notional principal balance — See notional amount … Financial and business terms
Notional principal amount — In an interest rate swap, the predetermined dollar principal on which the exchanged interest payments are based. The New York Times Financial Glossary … Financial and business terms
notional principal amount — In an interest rate swap, the predetermined dollar principal on which the exchanged interest payments are based. Bloomberg Financial Dictionary … Financial and business terms
Notional amount — The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change hands and is thus… … Wikipedia
notional amount — The principal amount or face value of a derivative. Defined by the Financial Accounting Standards Board ( FASB) in FAS 133 as the number of currency units, shares, bushels, pounds or other units specified in a derivatives contract. The notional… … Financial and business terms
notional amount — USA The amount on which the payments of the parties to a derivatives contract are based, usually used in the context of swaps, such as currency swaps and interest rate swaps. The amount is notional because there is no actual exchange of principal … Law dictionary
Accreting Principal Swap — A derivative where counterparties exchange financial instrument benefits, involving a growing notional principal amount. An accreting principal swap, is an interest rate or cross currency swap where the notional principal grows as it reaches… … Investment dictionary
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