What is the typical par value for a bond?

The typical par value for a bond is commonly set at $1,000. Par value, also known as face value, is the amount that the bond issuer agrees to pay the bondholder at maturity. Most corporate bonds are issued with this standard par value of $1,000, which serves as a benchmark in the bond market. When bonds are sold, they are generally traded in increments of this par value, making $1,000 the most recognized amount for bond transactions.

While par values can vary, with some bonds issued at different amounts like $500 or $2,000, these figures are not as standard as the $1,000 par value. The choice of $1,000 as the typical amount reflects its widespread acceptance and use in financial markets, facilitating easier comparisons and calculations for investors.