Multiple Choice:

4%

10%

8%

9%

Discount-Mart Issues $19 milion in bonds on January 1, 2021. The bonds have a seven-year term and pay interest seminmunity on June 30 and December 31 cach year. Below is a partial bond amortization schedule for the bonds: Cash Paid Interest Expense Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $760,000 760,000 760,000 760,000 $855,963 860, 761 865, 799 871,089 $ 95, 963 100, 761 105, 799 111,089 Carrying Value $17, 119,258 17,215,221 17,315,982 17,421,781 17,532,870 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate) (Do not round your intermediate calculations.) Multiple Choice 4% 10%