Current Attempt in Progress

On June $30,2016,$ Indigo Limited issued $13\mathrm{.}25\%$ bonds with a par value of $$792,000$ due in $20$ years. They were issued at $99$ and were

callable at $106$ at any date after June $30,2023.$

Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June

$30,2023,$ and to issue new bonds. New $10\%$ bonds were sold in the amount of $$1$ million at $103$ ; they mature in $20$ years. The company

follows ASPE and uses straight$-$line amortization. The interest payment dates are December $31$ and June $30$ of each year.