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Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Cash

Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Cash interest Decrease in balance Date 1/1/2021 6/30/2021 12/31/2021 6/30/2022 12/31/2022 $ 7,000 7,000 7,000 7,000 7,000 7,000 Effective interest 7,000 7,000 $ 6,211 6,187 6,163 6,137 6/30/2023 12/31/2023 6/30/2024 12/31/2024 What is the annual stated interest rate on the bonds? 6,112 6,085 6,057 6,029 $789 813 837 863 888 915 943 971 Outstanding balance $ 207,020 206,230 205,417 204,580 203,717 202,829 201,913 200,971 200,000

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