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Lopez Plastics Company (LPC) issued callable bonds on January 1, 2024. LPC's accountant has projected the following amortization schedule from issuance until maturity. Cash

Lopez Plastics Company (LPC) issued callable bonds on January 1, 2024. LPC's accountant has projected the following amortization schedule from issuance until maturity. Cash interest Effective Decrease in balance Date interest Outstanding balance 1/1/2024 $ 207,020 6/30/2024 $ 7,000 $ 6,211 $ 789 206,230 12/31/2024 7,000 6,187 813 205,417 6/30/2025 7,000 6,163 837 204,580 12/31/2025 7,000 6,137 863 203,717 6/30/2026 7,000 6,112 888 202,829 12/31/2026 7,000 6,085 915 201,913 6/30/2027 7,000 6,057 943 200,971 12/31/2027 7,000 6,029 971 200,000 What is the annual effective interest rate on the bonds?

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