Principal Sum

A Principal Sum is a borrowed money plus respective interest rate that have to be repaid on the maturity date.

• AKA: Nominal, Par Value, Face Amount, Bond Principal.
  • …
• Counter-Example(s)
  • Accrued Interest.
  • Loan.
  • Bond.
  • Interest Rate.
• See: Short-Term Debt, Interest, Fee, Settlement Date, Maturity Date.

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References

2016

• (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Bond_(finance)#Principal Retrieved 2016-10-30
  • Nominal, principal, par, or face amount is the amount on which the issuer pays interest, and which, most commonly, has to be repaid at the end of the term. Some structured bonds can have a redemption amount which is different from the face amount and can be linked to performance of particular assets.

• (MSRB, 2016) ⇒ Glossary of Municipal Securities Terms: http://www.msrb.org/Glossary/Definition/PRINCIPAL.aspx Retrieved 2016-10-30
  • QUOTE: Generally, the face amount or par value of a security payable on the maturity date.

2008

• (MA DoR, 2008) ⇒ Massachussets DoR. (2008). “Municipal Finance Glossary.” Massachussets Department of Revenue - Division of Local Services
  • QUOTE: Principal – The face amount of a bond, exclusive of accrued interest.

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