Discount-Mart issues $17 million in bonds on January 1, 2021 The bonds have a seven-year term and pay interest semiannualy 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 $680,000 680,000 680,000 680,000 $765.862 770,155 774,662 779.396 $85,862 90,155 94,662 99,396 Carrying Value $15,317,231 15,403,093 15.493,248 15,587,910 15,687,306 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.)