Problem $9-6$A $($Algo$)$ Understand a bond amortization schedule $($LO$9-5)$

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On January $1,2024,$ Pine Knob Enterprises issues $$29$ million of$$bonds that pay interest semiannually on June $30$ and December $31.$ Portions of the bond amortization schedule appear below:

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$(1)$

Date$(2)$

Cash Paid for Interest$(3)$

Interest Expense$(4)$

Increase in Carrying Value$(5)$

Carrying Value$1/1/2024$$$26,939,2026/30/2024$$$870,000$$$942,872$$$72,87227,012,07412/31/2024870,000945,42375,42327,087,497$

Problem $9-6$A $($Algo$)$ Part $5$

$5.$ What is the market annual interest rate? $($Round your answer to one decimal place.$)$

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