Holiday Company Issued Its 25-year age bonds In the pnnclpal amount 01 on January 2, 1998, at a discount of $150,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before maturity at 104% of the principal amount, but it did not provide for any sinking fund. On December 18, 2012, the company issued its 11%, 20-year debenture bonds in the principal amount of at 102, and the proceeds were used to redeem the 9%, 25-year mortgage bonds on January 2, 2013. The indenture securing the new issue did not provide for any sinking fund or for retirement before maturity.