Discount-Mart issues $17 million in bonds on January 1, 2024. The bonds have a seven-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 Date 01/01/2024 06/30/2024 $1,020,000 $1,085,929 12/31/2024 1,020,000 1,090,544 06/30/2025 1,020,000 1,095,482 12/31/2025 1,020,000 1,100,766 Increase in Carrying Value $65,929 70,544 75,482 80,766 Carrying Value $15,513,270 15,579,199 15,649,743 15,725,225 15,805,991 What is the market 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.)

Discount-Mart issues $17 million in bonds on January 1, 2024. The bonds have a seven-year term and pay interest semiannually on June 3C ind December 31 each year. Below is a partial bond amortization schedule for the bands: What is the market annual rate of interest on the bonds? (Hint Be sure to provide the annual rate rather than the sik-month rate).) (Do not round your intermedlate calculations.) What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month mte) (Do not round your Intermedinte calculations.) Multiple Choice 6x 12% 14%