FASB
FASB in Financial Law
Concept of FASB in this field: Financial Accounting Standards Board. Sets accounting standards for public and private companies. Interest Rate Swap: A contract between two parties, wherein the first counterparty agrees to make fixedrate interest payments to the second counterparty in exchange for floating-rate interest payments to the first counterparty by the second counterparty. The fixed rate of interest is called the “swap coupon”. The interest payments are calculated on the basis of a hypothetical amount of principal called the “notional principal” or the “notional amount”. Only the interest payments are exchanged, the notional principal is not exchanged.
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