Consider $1,000,000 par value, 10-year, 6.5% coupon bonds issued on January 1, 20X5. The market rate for similar bonds is currently 5.7%. A sinking fund provision requires the company to redeem $1,000,000 of the principal each year. Bonds called under the terms of the sinking fund provision will be redeemed at par. A bondholder would: prefer not to have her bonds called under the sinking fun provision prefer to have her bonds called under the sinking fund provision be indifferent between having her bonds called under the sinking fund provision or not called