On June 30, 2013, Culver Limited issued 11.75% bonds with a par value of $773,000 due in 20 years. They were issued at 96 and were callable at 105 at any date after June 30, 2020. 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, 2020, and to issue new bonds. New 8% bonds were sold in the amount of $1 million at 102; 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.