Wildhorse AG issues 2,900 convertible bonds at January 1, 2022. The bonds have a 3-year life and are issued at par with a face value of 1,000 per bond, giving total proceeds of 2,900,000. Interest is payable annually at 6%. Each bond is convertible into 250 ordinary shares (par value of 1). When the bonds are issued, the market rate of interest for similar debt without the conversion option is 8%. Wildhorse AG converts its convertible bonds on January 1, 2023.

(a) Compute the carrying value of the bond payable on January 1, 2023. (Round answer to 0 decimal places, e.g. 5,225.) Carrying value