Feed Plastics Co$.($FPC$)$ issued callable bonds on January $1,2019.$ FPC$\text{'}$s accountant has projected the following amortization schedule from issuance until maturity:

DateCashEffectiveDecrease inOutstandingInterestinterestBalanceBalance$1/1/2019$$$207,0206/30/2019$$$7,000$$$6,211$$$789206,23012/31/20197,0006,187813205,4176/30/20207,0006,163837204,58012/31/20207,0006,137863203,7176/30/20217,0006,112888202,82912/31/20217,0006,085915201,9136/30/20227,0006,057943200,97112/31/20227,0006,029971200,000$

What's the annual effective interest rate on the bonds?

Question $12$ options:

A$)$

$7\%$

B$)$

None of the above

C$)$

$3\mathrm{.}5\%$

D$)$

$6\%$