On January 1, 2021 Chelsea purchased $300,000 of 11%, 10-year bonds issued by Kinney Inc. The bonds with a $300,000 face value were priced to yield 10% interest. The bonds pay interest semi-annually on June 30 and Dec. 31. While the bonds were originally purchased for their high interest rate, Chelsea now believes Kinneys bond rating will increase in the first couple of months of 2022 due to the companys expansion. This should drop the effective interest rate for Kinneys bonds and Chelsea plans to sell them when the prices rise at a profit. As of December 31, 2021, the bonds are selling at 107.