Bridge Bonds Series A Dated 7-15-2005 4.375% Due 7-15-2055 @100.00 What is the maturity date of this bond? O 7-15-2055 O 7-15-2005 If the price of the bond is initially discounted and offers no coupon payments, the bond is called a zero-coupon bond. Which feature of a bond contract allows the issuer to redeem bonds under specified terms prior to maturity? O Call provision O Put provision ODeferred call provision O Sinking fund provision Issuers can gradually reduce the outstanding balance of a bond issue by using a sinking fund account into which they deposit a specified amount of money each year. To operationalize the sinking fund provision of an indenture, issuers can (1) purchase a portion of the debt in the open market or (2) call the bonds if they contain a call provision Under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures? O When interest rates are higher than they were when the bonds were issued O When interest rates are lower than they were when the bonds were issued