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On January 1, 2015, Nugget Inc. issued \$1,000,000 face value, 5% bonds at 110 (an effective interest rate is 4%). The bonds will mature in five years. The company pays interest semiannually on December 31 and July 1 of each year and amortizes any discount or premium by way of the effective interest rate method.

Note: For ease of calculation, the issue price does not match the value based on the bond issue price model for a stated rate of 5% and an effective rate of 4%.

On December 31, what is the carrying value of the bond (in dollars)?

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