Finance · Principal
In the context of investments and bonds, what does the term 'principal' refer to?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The total interest earned over the life of an asset.
- 2The original sum of capital invested or the face amount of a bond.✓
- 3The transaction fees paid to a brokerage firm.
- 4The dividend yield percentage paid out annually.
Correct answer
The original sum of capital invested or the face amount of a bond.
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