General Investment Co. (GIC) purchased bonds on January 1, 2018. GIC's accountant has projected the following amortization schedule from purchase until maturity: Cash Pald Interest Revenue Increase in Carrying Value Date Carrying Value $243,447 244,435 245,462 6/30/18 12/31/18 6/30/19 12/31/19 6/30/20 12/31/20 $8,750 8,750 8,750 8,750 8,750 8,750 9,777 9,818 9,861 9,906 9,953 $988 1,027 1,068 1,111 1,156 1,203 247,641 248,797 $250,000 What is the annual market interest rate on the bonds? o 80% ? 70% o 3.5% 4.0%