MacBride Enterprises sold $200,000 of bonds on December 31, 2018. A portion of the amortization table appears below Cash Payment (Credit) Premium on Bonds Payable Balance (Credit) $6,457 5,922 5,365 4,785 Interest Expense (Debit) Premium on Bonds Payable (Debit) Bond Payable Carrying Value (Credit) Period At issue 06/30/19 12/31/19 06/30/20 12/31/20 $9,000 9,000 9,000 $8,465 8,443 8,420 $535 557 580 $206,457 205,922 205,365 204,785 Required 1. Indicate the stated annual interest rate on these bonds 2. Calculate the effective annual interest rate on these bonds. (Note: Round to the nearest 0.1%.)