On January $2,$ Year $1,$ Lindsay Corporation issued $$800,000$ of $8\%$ convertible bonds at par. The bonds mature in $10$ years and pay interest semiannually on June $30$ and December $31.$ Each $$1,000$ bond could be converted into $26$ shares of the company$$s $$2\mathrm{.}50$ par value common stock. Alternatively, Lindsay has the right to settle the bonds in cash instead of issuing common stock. Similar bonds without the conversion feature would carry a $10\%$ stated interest rate.