I’m having trouble with this example. The bond sells at $1025. How does that imply that the PV is $1025 and FV is $1000. More specifically, how have they calculated the FV here?
PV is defined (as the name suggests) as the value of a payment in t=0 (today). In the case of a bond, often times you are asked to compute the PV of the bond (i.e. the price you would have to pay for the bond today) given some information about its coupon payments, discount rate etc. If the question tells you, that the bond sells for $1025, you know that this must be the present value (unless of course it is an arbitrage question where you are being told that the bond is mispriced or something along those lines).
The majority of bonds are designed in such a way, that they promise to make payment at maturity of either $100 or $1000 (and possibly some coupon payments along the way until maturity).
In the chapter “Fixed Income” they’ll explain all that stuff in more detail (and exceptions).
Thank you very much. 
You are welcome.