Question: Current Attempt in Progress On June 3 0 , 2 0 1 6 , Indigo Limited issued 1 3 . 2 5 % bonds with

Current Attempt in Progress On June 30,2016, Indigo Limited issued 13.25%

Current Attempt in Progress
On June 30,2016, Indigo Limited issued 13.25% bonds with a par value of $792,000 due in 20 years. They were issued at 99 and were
callable at 106 at any date after June 30,2023.
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
30,2023, and to issue new bonds. New 10% bonds were sold in the amount of $1 million at 103 ; 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.
bonds with a par value of $792,000 due in 20 years. They

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