I dont see anywhere it says about weapons with 100% spiritbond & materia equiped can be used in a spirtbond.

Do equiped materia status get upgraded when the materia on the weapon gets used in a second spirtbond?

Sword 100%+Blue Materia=Yellow Materia+1?

Do I lose materia upgrades on equipment if I even do a spirtbond on that equipment or do I need to purge equipment first before doing spirtbonding?