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Canadian Sea Rides Ltd. issues $8,000,000 of four-year, 4% bonds dated January 1, 20X5. Interest is payable on January 1 and July 1 each year.

Canadian Sea Rides Ltd. issues $8,000,000 of four-year, 4% bonds dated January 1, 20X5. Interest is payable on January 1 and July 1 each year. The market rate of interest is 3%. The bonds are sold (issued) for $8,299,437. Sea's lawyers charge a $100,000 fee for their work on the bond issue. What is the effective interest rate that Canadian Sea Rides Ltd. pays per period?

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