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ACI

3I0-013 · Question #192

The notional amount in an interest rate swap is:

The correct answer is C. The amount on which floating and fixed interest payments are calculated. See the full explanation below for the reasoning.

Question

The notional amount in an interest rate swap is:

Options

  • AThe sum of all the fixed and floating rate payments
  • BThe net difference between fixed and floating rate payments
  • CThe amount on which floating and fixed interest payments are calculated
  • DThe amount at which the two counterparties can close-out their transaction

How the community answered

(24 responses)
  • A
    13% (3)
  • B
    4% (1)
  • C
    79% (19)
  • D
    4% (1)

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