Actually I am facing a huge discussion at work about the vocabulary we are using to test products. We keep returning on the question; when do we use the term "Notional" and when do we use "Nominal" I know that Notional is a value that doesn't change over time (= Par value at issue date ) So what is the difference between it and "Notional" and when should we use these terminologies exactly ?
The definition depends whether or not you're discussing bond/swap trading or macroeconomics.
For bonds and swaps, the "notional" or "nominal" values are the same thing.
In macroeconomics however "nominal" rates are the stated interest rates before deducting the rate of inflation. (As opposed to the "real" interest rates which are inflation-adjusted)
I think the reason you don't hear "nominal" as often as "notional" for structured products is to preserve this distinction.