of statement breaks binlog.

There were two problems discovered by this bug:

  1. Default (current) database is not fixed at the creation time.
     That leads to wrong output of DATABASE() function.

  2. Database attributes (@@collation_database) are not fixed at
     the creation time. That leads to wrong resultset.

Binlog breakage and Query Cache wrong output happened because of
the first problem.

The fix is to remember the current database at the PREPARE-time and
set it each time at EXECUTE.