Swap Payment
A swap payment is the periodic cash amount exchanged under a swap contract, based on a stated notional amount and the comparison of two cash-flow legs on each payment date.
Example: In a standard interest rate swap, Party A pays fixed 2.25% on a $5 million notional while Party B pays a floating rate tied to SOFR; on each quarterly payment date, the swap payment is the net amount exchanged between the two legs.
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