On $1$ July $20$X$1$ Purple Co issues $\backslash (10,000\backslash$$ $100\backslash )$ convertible bonds at par. The bonds pay interest annually in arrears at $\backslash (4\backslash \%\backslash )$ and are redeemable at par on $30$ June $20$X$5.$

On this date each of the bonds can be exchanged for $15$ ordinary shares. The market rate of interest for similar bonds with no conversion rights attached is $\backslash (5\backslash \%\backslash ).$

What should be recognized in the financial statements when the bonds are issued?