PRINCIPAL BOND FUND INC /MD/
24F-2NT, 2001-01-12
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                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 24F-2
                        Annual Notice of Securities Sold
                             Pursuant to Rule 24f-2

      1       Name and Address of Issuer:
              Principal Bond Fund, Inc.
              The Principal Financial Group
              Des Moines, IA  50392-0200

      2       The name of each series or class of securities for which this Form
              is filed (If the Form is being filed for all series and classes of
              securities of the issues,  check the box but do not list series or
              classes):
              -------------
                   X
              -------------

      3       Investment Company Act File Number:          811-05172
              Securities Act File Number:                  33-14536

      4 a     Last day of fiscal year for which this notice if filed:
              October 31, 2000

      4 b     Check this box if this Form is being filed late (i.e., more than
              90 calendar days after the end of the issuer's fiscal year). (See
              Instruction A.2)
              -------------
                  N/A
              -------------
              Note: If the Form is being filed late, interest must be paid on
              the registration fee due.

      4 c     Check box if this is the last time the issuer will be filing this
              Form.
              -------------
                  N/A
              -------------

      5       Calculation of registration fee:

              (i)          Aggregate sale price of securities sold during the
                           fiscal year in reliance on rule 24f-2:     $4,182,183

              (ii)         Aggregate price of shares redeemed or
                           repurchased during the fiscal year: 5,804,289

              (iii)        Aggregate price of shares redeemed or
               repurchased during any prior fiscal year ending no
                           earlier than October 11, 1995 that were not
                           previously used to reduce registration fees
                           payable to the Commission:                          0

              (iv)         Total available redemption credits
                           [Add items 5(ii) and 5(iii)]:               5,804,289


              (v)          Net Sales - If Item 5(i) is greater than Item 5(iv)
                           [subtract Item 5(iv) from Item 5(i)]:               0

        ------------------------------------------------------------------------

              (vi)         Redemption credits available for use in future years
                           -- if Item 5(i) is less than Item 5(iv)
                           [subtract Item 5(iv) from Item 5(i)]" (1,622,106)

        ------------------------------------------------------------------------

              (vii)        Multiplier for determining registration fee (See
                           Instruction c.9):                             0.00025

              (viii)       Registration fee due [Multiply Item 5(v) by Item
                           5(vii)] (enter "0" if no fee is due):            0.00
                                                                  ==============

      6       Prepaid Shares
              If the response to Item 5(i) was determined by deducting an amount
              of securities  that were  registered  under the  Securities Act of
              1933 pursuant to rule 24e-2 as in effect before [effective date of
              rescisision  of rule 24e-2],  then report the amount of securities
              (number of shares or other units) deducted here: ____________.  If
              there is a number of shares or other  units  that were  registered
              pursuant to rule 24e-2  remaining  unsold at the end of the fiscal
              year for which  this form is filed that are  available  for use by
              the issuer in future  fiscal  years,  then state the number  here:
              ____________.

      7       Interest due-if this Form is being filed more than 90 days after
              the end of the issuer's fiscal year (see Instruction D):
                                                                +              0
                                                                  --------------

      8       Total of the amount of the registration fee due plus any interest
              due [line 5(viii) plus line 7]:

                                                                            0.00
                                                                  ==============

      9       Date the registration fee and any interest payment was sent to the
              Commission's lockbox depository:

              -------------
                01/12/01
              -------------

              Method of Delivery:

              -------------
                  N/A      Wire Transfer
              -------------
              -------------
                  N/A      Mail or other means
              -------------


                                    Signature

This  report has been  signed  below by the  following  persons on behalf of the
issuer and in the capacities and on the dates indicated:


Principal Bond Fund, Inc.


By           /s/ A. S. Filean
        ----------------------------------
        A.S. Filean, Vice President
        and Secretary


Date:         12th day of January 2001



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