Question 7 (of 10) 7. value: 10.00 points MC Qu. 113 Discount-Mart issues ... Discount-Mart issues $20 million in bonds on January 1, 2018. The bonds have a eight-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Interest Expense Cash Pald Increase in Carrying Value Date 1/1/18 6/30/18 12/31/18 6/30/19 12/31/19 $600,000 600,000 600,000 600,000 $706,782 711,053 715,495 720,115 $106,782 111,053 115,495 120,115 Carrying Value $17,669,541 17,776,323 17,887,376 18,002,871 18,122,986 1 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six month rate.) (Do not round your intermediate calculations.) 7% O 6%. Ooo