Possible Prohibited Transaction by IRA owner?

[Guest Pennysaver]

Individual purchases bond via individual's IRA in company in which individual is owner via family attribution and of which individual is an employee. The bond was issued by an unrelated entity.

Issue #1: Assuming the individual's attributed ownership in the company is less than 50%, the company would not appear to be a disqualified person under 4975(e)(2)(G). But would it be a disqualified person under 4975(e)(2)©, which states a disqualified person is an employer any of whose employees are covered by the plan (in this case, the IRA)? Or does the issuance of the bond by an unrelated entity render the transaction indirect enough that it is not a prohibited transaction? Or is the company not a disqualified person under 4975(e)(2)© at all if the company was not involved with the establishment of the IRA?

Issue #2: Is the individual also a disqualified person under 4975(e)(2)(A), which states a fiduciary is a disqualified person, since the individual directed the investment of the IRA?

Issue #3: Assuming yes to Issue #2, is there any way to cure the prohibited transaction and avoid the application of 408(e)(2), which provides the IRA is no longer an IRA as of the first day of the taxable year in which the prohibited transaction occurs, and deems the assets of the IRA to be distributed to the IRA owner? Can the transaction be reversed or unwound in some way? Or is the IRA owner stuck with the resulting taxable deemed distribution of the IRA?