What is the par value of the bonds issued by the firm in the example given?

The par value of a bond, often referred to as its face value or principal amount, is the amount that the issuer agrees to pay the bondholder at maturity. In many cases, the par value is set at common denominations, with $1,000 being the most standard for corporate bonds.

When determining the par value from the provided choices, identifying the most typical figure used in bond markets is essential. The choice of $1,000 represents the prevailing norm for many corporate and government bonds, making it a logical answer. It is important to consider that par values can vary in specific contexts, such as municipal bonds or smaller issuances, but in general industry practice, $1,000 is a widely accepted benchmark.

Options with figures like $500, $5,000, or $10,000 are less frequently encountered as standard par values in bond issuances and do not align with the typical structure found in commonly traded securities. Thus, the selection of $1,000 appropriately reflects the standard convention in bonds, validating it as the correct par value.