$1)$ Burr Oak Malinois Co$.($BOM$)$ issued callable bonds on January $1,2021.$ BOM's accountant has projected the following amortization schedule from issuance until maturity:Cash interestEffective interestDecrease in balanceOutstanding balance

What is the annual stated interest rate on the bonds?$*$

A$)\backslash (3\mathrm{.}5\backslash \%\backslash )$

B$)\backslash (6\backslash \%\backslash )$

C$)\backslash (7\backslash \%\backslash )$

D$)$ None of the answer choices is correct.