Elements of a typical IRS

abhishreshthaa

Abhijeet S
Notional Principal

the floating and fixed interest rate calculations are for a pre-decided principal
there is no actual exchange of principal


Fixed rate

predetermined rate, valid for the entire life of the Swap


Floating rate

linked to a benchmark rate, keeps changing periodically


Payment dates and conventions

swap start date, payment frequency, fixing date, maturity date
 
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