Retro Inc. reports its financial results in accordance with IFRS. Its balance sheet as at December 31, 2023, included the debt and equity set out below: Liabilities Bonds payable $3,859,649 Equity Contributed surplus-common stock conversion rights 345,000 Preferred shares, no par value, 1,000,000 shares authorized, 80,000 outstanding 2,000,000 Common shares, no par value, 1,000,000 shares authorized, 200,000 outstanding Additional information 6,000,000 1. The $4,000,000 in bonds payable pay interest semi-annually on June 30 and December 31 and mature on December 31, 2025. The coupon rate of interest is 5% per annum and the effective interest rate per period is 3.4542%. 2. At the option of the investor, each $1,000 bond is convertible into 15 common shares at any time before maturity. All bondholders exercise their option on July 1, 2024. The market price of the shares at conversion date was $80.00