Interest Expense Increase in Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $14,000 14,000 14,000 14,000 14,000 14,000 $15, 974 16,892 16,218 16,351 16,492 16,641 $1,974 2,092 2,218 2,351 2,492 2,641 Carrying Value $266, 232 268, 206 270,298 272,516 274,867 277,359 280,000 What is the annual market interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the se-month rate.) (Do not round your intermediate calculations.)