Discount-Mart issues $12 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: Cash Paid Interest Expense Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $360,000 360,000 360,000 360,000 $419, 235 421, 605 424, 069 426,632 $59, 235 61, 605 64, 069 66, 632 Carrying Value $ 10, 480, 884 10,540, 119 10, 601, 724 10,665,793 10,782, 425 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.)