Multiple Choice 11% 10% 12% 5%

Discount-Mart issues S12 million in bonds on January 1, 2024. The bonds have e ten-year term and pay interest semiannually on June 30 and December 31 each yeer_ Below is e partial bond amortization schedule for the bonds: Date 81/81/2824 86/38/2824 12/31/2824 86/38/2825 12/31/2825 Cash Paid Interest Expense Increase in Carrying Value $688 , eee $637 , 417 $37,417 688, eee 639, 662 39,662 see, eee 642, e41 42,841 see, eee 644 564 44,564 Carrying Value 18, 788, 689 18, 742, 738 18, 787 , 294 What is the market annual rate of interest on the bonds? (Hint Be sure to provide the annual rete rather then the six-month rete.) (Do not round your intermediate calculations.) Multlple Cholce O O O O