On June 30, Mendenhal Company issued 8% bonds with a par value $600,000 due in 20 years. They were issued at 82.8414 to yield 10% and were callable at 104 at any date after June 30, 2015. Because of lower interest rates and a significant change in the company's credit rating. It was decided to call the entries issue on June 30, 2016, and to issue new bonds. New 6% bonds were sold in the amount of $800,000 at 112.5513 to yield 5%; they mature in 20 years. Interest payment dates are October 31 and June 30 for both and new bonds.