Ralph Inc. issued convertible bonds on 1 July 2018. The 15-year, 5% $13,500,000 bonds pay interest semi-annually each 30 June and 31 December. At the investor's option, each $1,000 bond is convertible into 50 common shares on the bond's maturity date. Bond market analysts indicated that if the bonds had not been convertible, they would likely have sold to yield 6%, and have raised $12,177,000. They were, in fact, issued for $14,000,000. 1