To be effective issuing and investing in bonds, knowledge of their terminology characteristics, and features is essential For example . A bond refers to its face value and the amount of money that the issuing entity borrows and promises to repay on the maturity a . A bond issue is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture arm or if it violates one or more of the issues restrictive covenants The contract that describes the arms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds . A bonds allows a bondholder de preferred shareholder to cover their bond or preferred share, respectively into a specified number or value of common shares. Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information Bridge Bonds Series A Dated 7-15-2005 4.375% Due 7-15-2055 100.00 What is the maturity date of this bond? 07-15-2005 07.15 2055 of the price of the bond is initially discounted and offers no coupon payments, the band is called a bond. Which feature of a bend contract allows the issues to radioen bonds under specified terms price te maturity? O Deferred call provision O call provision O Sinking fund provision O Pul provision kes can gradually reduce the outstanding balance of a bond is 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, issues 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 fim be more likely to buy the required number of bonds in the open market as opposed to one of the other procedures When interest rates are lower than they were when the bonds were issued O When interest rates are higher than they were when the bonds wird