2) Discount-Mart issues $15 million in bonds on January 1, 2024. The bonds have a ten-year...

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2) Discount-Mart issues $15 million in bonds on January 1, 2024. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2024 $13,279,512 06/30/2024 $750,000 $796,771 $46,771 13,326,283 12/31/2024 750,000 799,577 49,577 13,375,860 06/30/2025 750,000 802,552 52,552 13,428,412 12/31/2025 750,000 805,705 55,705 13,484,117 What is the market annual rate of interest on the bonds? (Do not round your intermediate calculations.) A) 12% B) 11% C) 5% D) 10% 2) Discount-Mart issues $15 million in bonds on January 1, 2024. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2024 $13,279,512 06/30/2024 $750,000 $796,771 $46,771 13,326,283 12/31/2024 750,000 799,577 49,577 13,375,860 06/30/2025 750,000 802,552 52,552 13,428,412 12/31/2025 750,000 805,705 55,705 13,484,117 What is the market annual rate of interest on the bonds? (Do not round your intermediate calculations.) A) 12% B) 11% C) 5% D) 10%