Discount-Mart issues $19 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: Interest Expense Date 01/01/2024 06/30/2024 $570,000 $679,720 12/31/2024 570,000 684,109 06/30/2025 570,000 688,673 12/31/2025 570,000 693,420 Cash Paid Increase in Carrying Value $109,720 114, 109 118,673 123, 420 Carrying Value $16,993,007 17,102,727 17,216,836 17,335,509 17,458,929 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.)

Discount-Mart issues $19 milition 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: 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.) 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.) Multiple Choice 3% 6% 8\%, 7%