Question 7 (12 points) Wolverine Chow Corporation recently issued bonds with a face value of $5,000,000 and a coupon rate of 5% for 12 years. The market rate of interest is 6% and the bonds pay interest semiannually. a. Compute the market value of the bond. (4 points) b. How much is the premium or discount at the bond issuance date? (2 points) c. Assume that after one year, the market rate remains the same, and Wolverine Chow Corporation decides to retire this bond issuance at a cost of $5,010,000. Will there be a gain or loss on the retirement and for what amount? (4 points)