Could someone explain what is the difference between principal and par value in terms of a bond?
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Usually both principal and par value refer to payment from a bond on its maturity. Sometimes term nominal is used for this as well.
There can a little difference, however. Principal is used for a total value you get on maturity of a bond, e.g. 1 mio. USD or so-called principal payment comming monthly from MBS (Mortgage Backed Security).
Par value can be connected with price. When bond is traded at par, it means that its price 100. If the price is less than 100, bond is traded below par, in case price is above 100, it is traded above par.