Discount-Mart issues $18 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 06/30/2021 $1,080,000 Cash Paid Interest Expense Increase in Carrying Value Carrying Value $16,189,364 $1,133,255 $53,255 16,242,619 12/31/2021 1,080,000 1,136,983 56,983 16,299,602 06/30/2022 1,080,000 12/31/2022 1,140,972 60,972 1,080,000 1,145,240 65,240 16,360,574 16,425,814 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.) Multiple Choice 6%. 14%. 13%.