The bondholder will receive $1000
The bond has a par value of $1000 is sold at $825. So, when the bondholder will sell the bond at maturity he will receive the par value of $1000, giving him a profit of $175.
The face value of a bond is its par value. A bond's or fixed-income instrument's par value is crucial since it establishes the maturity price and the amount of coupon payments. Depending on elements like the level of interest rates and the bond's credit standing, the market price of a bond may be above or below par. Due to the common denominations in which bonds are issued, the par value for a bond is typical $1,000 or $100.
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