Notional value is a simple idea but it can be confusing. The fact that it is not an actual amount of money that changes hands is the main reason for this confusion. As we have seen though, it is a useful value to have on bonds and other financial instruments. It makes it easier for...
A notional amount is the face value of a financial instrument. Though this amount is used to calculate any payments that must be...
The wayHRAs workis simple. HRAs are unfunded notional accounts with no cash value. This means that employers don’t release HRA funds until they approve reimbursements. Through HRAs, employers reimburse employees directly after they incur an eligible healthcare expense. Employer contributions are tax-...
What is Virtual Reality? Definition of Virtual Reality: Is a world (objects and subjects) created by technical means, transmitted to a person through his sensations: sight, hearing, smell, touch, etc. Virtual reality imitates both impact and responses to
What is the purpose of auditing? What is personality? How do we typically measure it? What is the objectivity principle? What is variance analysis? What should be considered when evaluating a training room? What is due diligence? What is notional value?
In a basis rate swap, the two parties agree to exchange the interest payments on a notional principal amount for a given period. The notional principal amount represents the hypothetical value on which the interest payments are calculated and is used for contract purposes only. ...
What is a reserve requirement? What is a demand deposit? What is a trustee? What is a certificate of deposit? What is notional value? What are alliances? What is a guarantor mortgage? What is mutual assent in a contract? What is the underwriting process?
Let’s break down the mechanics of a Plain Vanilla Swap: Two parties, known as the “counterparties,” enter into an agreement to exchange cash flows. They agree on the notional amount, which represents the principal or face value on which the cash flows will be calculated. ...
What Is Deferred Tax? A deferred tax measures corporate income taxation as a notional asset or liability. It does so in a manner that is more or less equal to that of the recognition of profits and tax treatment. Deferred tax assets and liabilities add a layer of complexity to tax accounti...
What is market segmentation? What are mental models in business? What is notional value? What is portfolio analysis? What is financial forecasting? What is game theory in behavioral finance? (a) What is the Bertrand model? (b) What is its relationship to the Cournot model?