Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Cash interest Effective interest Decrease in balance Date 1/1/2021 6/30/2021 12/31/2021 6/30/2022 12/31/2022 6/30/2023 12/31/2023 6/30/2024 12/31/2024 $7,000 7,000 7,000 7,000 7,eee 7,000 7,000 7,000 $6,211 6,187 6,163 6,137 6,112 6,085 6, e57 6,029 $789 813 837 863 888 915 943 971 Outstanding balance $207,020 206,230 205,417 284,580 203, 717 202,829 201, 913 200,971 200,000 What is the annual stated interest rate on the bonds? What is the annual stated interest rate on the bonds? Multiple Choice 3.5% 7% None of the answer choices is correct