On January $1,2024,$ Madison Products issued $$80$ million of $10\%,20-$year convertible bonds at a net price of $$80\mathrm{.}3$ million.

Madison recently issued similar, but nonconvertible, bonds at $99($that is$,99\%$ of face amount$).$

The bonds pay interest on June $30$ and December $31.$

Each $$1,000$ bond is convertible into $30$ shares of Madison$$s no par common stock.

Madison records interest by the straight$-$line method.

On June $1,2026,$ Madison notified bondholders of its intent to call the bonds at face value plus a $1\%$ call premium on July $1,2026.$

By June $30,$ all bondholders had chosen to convert their bonds into shares as of the interest payment date.

On June $30,$ Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted.

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