If an IAR swap uses LIBOR (the London InterBank Offer Rate) as an interest-rate index, then changes in LIBOR will affect the notional principal involved in the swap.

Name: If an IAR swap uses LIBOR (the London InterBank Offer Rate) as an interest-rate index, then changes in LIBOR will affect the notional principal involved in the swap.
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Changes in LIBOR will affect the floating leg payments of the swap, which in turn will affect the notional principal used to calculate the fixed leg payments.

If an IAR Swap Uses LIBOR (The London InterBank Offer