Discount-Mart issues $16 million in bonds on January 1, 2018. 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	Cash Paid	Interest Expense	Increase in Carrying Value	Carrying Value
1/1/2018				$14,129,666
6/30/2018	$640,000	$706,483	$66,483	14,196,149
12/31/2018	640,000	709,807	69,807	14,265,956
6/30/2019	640,000	713,298	73,298	14,339,254
12/31/2019	640,000	716,963	76,963	14,416,217

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.)