Multiple choice options:

10%

11%

5%

12%

Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA'S accountant has projected the following amortization schedule from Issuance until maturity: Cash Paid Interest Expone Increane in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $11,500 11,500 11,500 11,500 11,500 11,500 $13,121 13,219 13,322 13, 431 13,547 13,670 $1,621 1,719 1,822 1,931 2,047 2,179 Carrying Value $218,690 220,311 222,030 223,852 225,783 227,830 230,000 What is the annual stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rote) (Do not round your intermediate calculations.) Multiple Choice 10% 11%