Discount-Mart issues $11 million in bonds on January 1, 2021. The bonds have a nine-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2021 Cash Paid Interest Expense Increase in Carrying Value Carrying Value $ 9,893,500 06/30/2021 $660,000 $692,545 $32,545 9,926,045 12/31/2021 660,000 694,823 34,823 9,960,868 06/30/2022 12/31/2022 660,000 697,261 37,261 9,998,129 660,000 699,869 39,869 10,037,998 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) Multiple Choice 13%. 12%.