Telta Inc. issued $15,000,000 of 12%, 40-year convertible bonds on November 1, 2014, at 97 plus accrued interest. The bonds were dated July 1, 2014, with interest payable January 1 and July 1. Bond discount (premium) is amortized semiannually on a straight-line basis. On July 1, 2015, one-half of these bonds were converted into 60,000 shares of $1 par value common stock. Accrued interest was paid in cash at the time of conversion.