1. A company that prepares its financial statements in accordance with IFRS issues ￡5,000,000 facevalue 10-year bonds on 1 January 2013 when market interest rates for such bonds are 5.50%. Thebonds carry a coupon of 6.50%, with interest paid annually on 31 December. The carrying value ofthe bonds as of 31 December 2014 will be closest to: