swap - financial contract in which 2 parties, Financial Accounting

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swap - financial contract in which 2 parties

Swap - Financial contract in which 2 parties agree to exchange net streams of payments over a specified period. Payments are normally determined by applying different indices (for example foreign exchange rates, interest rates, equity indices) to a NOTIONAL amount. The term notional is used as swap contracts generally don't involve exchanges of PRINCIPAL.

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Financial Accounting: swap - financial contract in which 2 parties

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