Cagney Company sold $200,000 of bonds on July 1, 2018. A portion of the amortization table appears below.

Required:
1. Indicate the stated interest rate on these bonds.
2. Calculate the effective annual interest rate on these bonds.
3. Determine the interest expense and discount amortization for the interest period ending December 31, 2020.
4. Determine the liability balance after the interest payment is recorded on December 31, 2020.