CMS Corporation's Balance Sheet as of Today Is as Follows

CMS Corporation's balance sheet as of today is as follows: $$\begin{array} { l r } \text { Long-term debt (bonds, at par) } & \$ 10,000,000 \\\text { Preferred stock } & 2,000,000 \\\text { Common stock (\$10 par) } & 10,000,000 \\\text { Retained earnings } &\underline{ 4,000,000} \\ \text { Total debt and equity } &\underline{ \$ 26,000,000 }\\\end{array}$$ The bonds have a 4.0% coupon rate,payable semiannually,and a par value of $1,000.They mature exactly 10 years from today.The yield to maturity is 12%,so the bonds now sell below par.What is the current market value of the firm's debt?

A) $5,276,731
B) $5,412,032
C) $5,547,332
D) $7,706,000
E) $7,898,650