Let's suppose our hypothetical CPU has an instruction to load a register from an address in memory:
LOAD R<n>,<address>
Now let's suppose that your program contains an example of such an instruction, at address 0x1000, that loads register R3 from address 0x5678:
00001000 LOAD R3,0x5678
Then according to your quote, the location is 0x1000, and the address part of the instruction is 0x5678.
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