Universal Foods issued $12\%$ bonds, dated January $1,$ with a face amount of $$135$ million on January $1,2021$ to Wang Communications.

The bonds mature on December $31,2038(15$ years$).$

The market rate of interest for similar issues was $14\%.$

Interest is paid semiannually on June $30$ and December $31.$

Universal uses the straight$-$line method.