notional principal amount

English - English

Definition of notional principal amount in English English dictionary

(Finans) 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 referred to as

Related Terms

notional amount

A nominal amount of a financial instrument that is used to calculate payments made on that instrument, especially for instruments that do not have a well-defined face value or par value

Notional amount

(Finans) 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 referred to as

Hyphenation

no·tion·al prin·ci·pal a·mount