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.