8. Lopez Plastics Co. (LPC. issued callable bonds on January 1, 2016. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date interest interest balance balance 1/1/2016 ____ 6/30/2017 12/31/2017 6/30/2018 12/31/2018 What is the annual effective interest rate on the bonds? A. 3% B. 3.5% C. 6% D. 7%