A notional amount is the face value that is used to determine payments for a product or service. This is not always the amount of money that is exchanged through sales and purchases.
An example of this is the exchange of bonds whereby a buyer pays for the principal cost, but does not get back this amount until the bond matures later on. In the process the buyer will get coupons based on the principal amount. However, in swaps there are no principle payments and expiration dates. Interest accrues on the bond, but is never formally paid for. It is the percentage a person owns of an asset only.

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