January 1, 2022, Tess Technology, Incorporated issued $ 750 comma 000 of $ 1 comma 000 par value, 3 %, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2022. The market rate of interest for similar nonconvertible bonds on the date of the bond issue was 8 %. However, because these bonds are convertible, the effective rate is 6 %. Each bond is convertible into 60 shares of Tess Technology's $ 1 par value common stock.