D) $8,850. Problems 24-26 are a part of a multi-step problem using the following information Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2018. LPC's accountant has projected the following amortization schedule from issuance until maturity: Outstanding balance Decrease in Cash interest Effective Interest Date balance S 207,020 206,230 205,417 204,580 203,717 202,829 201,913 200,971 200,000 1/1/2018 S 789 813 837 863 6/30/2018 6/30/2019 6/30/2020 S 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 S 6,211 6,187 6,163 6,137 6,112 6,085 6,057 6,029 12/31/201S 2/31/2019 12/31/2020 915 943 971 6/30/2021 12/31/2021 24. What is the annual stated interest rate on the bonds? A)7% B) 3.5% C) 6% D) None of the answer choices is correct. 25. What is the annual effective interest rate on the bonds? A) 6% B) 3.5% C) 7% D) 3% 26. LPC calls the bonds at 103 immediately after the interest payment on 12/31/2019 and retires them. W gain or loss, if any, would LPC record on this date? A) S3,717 gain B) $6,000 loss C) No gain or loss D) $2,283 loss