Bridge Bonds Series A Dated $7-15-20054\mathrm{.}375\%$ Due $7-15-2055$ @$100\mathrm{.}00$

$q,$

What is the coupon interest rate of this bond?

$4\mathrm{.}375\%$

$0\mathrm{.}435\%$

If the coupon interest rate remains constant from the time of issue until the bond matures, then the bond is called a $q,$ fixed$-$rate bond.

The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called the $$

When are issuers more likely to call an outstanding bond issue?

When interest rates are lower than they were when the bonds were issued

When interest rates are higher than they were when the bonds were issued