Is it only the principal amount, original cost of the bond at the end of maturity date or does it include the whole sum with the interest payments?

  • Better explore the concepts of dirty price and clean price. – DumbCoder May 2 '17 at 8:22

Does par value include interest?

No - that is the amount of "principal" that you receive when the bond matures. Interest that you receive from coupons on or before maturity is separate.

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  • So the principal amount is the same thing as par value? – Dan May 1 '17 at 19:27
  • @Dan Essentially, yes, although "par value" is more commonly used for bonds, since it's often different that the amount paid for the bond, versus a loan where you give a set amount of money and get paid back over time.. – D Stanley May 1 '17 at 19:36

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