On July 1, 2019, $5.5 million face amount of 7%, 10-year bonds were issued. The bonds pay interest on an annual basis on June 30 each year. The market interest rates were slightly higher than 7% when the bonds were sold.

Required:

1. How much interest will be paid annually on these bonds? (Enter your answer in whole dollar, not in millions)
2. Were the bonds issued at a premium or discount?
3. Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year?