The par or face value of a debt instrument.

The principal is the cost per bond multiplied by the number of bonds in a transaction. Note that the price of a bond is quoted as a percentage of $1,000 (Par). So if you purchase 10 bonds that are priced at 99.0, the price is 10 x (99% of 1,000) = $9,900. (To convert a bond price to principal, simply move the decimal one place to the right.)

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