A bond’s denomination is its stated or par value, which is most often $1,000 for traditional bonds or $5,000 for municipal bonds. Denominations are typically the par value that is paid at the bond’s maturity to bondholders as the principal in addition to the interest.
For example, a general obligation bond may have a $5,000 denomination, which means that the government will owe $5,000 at maturity in addition to principal payments along the way.
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