The president and the board of directors have been talking about ways to use the unexpected profits from the sale of some land to the state for a right of way. One idea that was under consideration at the last meeting was to “call” (or pay off early) up to $1,500,000 of an older DCI bond issue. The older bonds have a face value of $100,000 each and pay 18% in semi-annual installments. They have an early call provision for a 5% premium over face value. The bonds were sold 8 years ago and had a 12-year term. A payment (Number 16) was made last week. These bonds were sold at a premium ($110,000 less $2,500 in selling expenses) in part because of the early call premium. The pre-tax MARR of DCI is 17.5%.