Required information [The following information applies to the questions displayed below) On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Cash Interest Amortization Date January 1, Year 1 End of Year End of Year 2 End of Year 3 End of Year 4 $ 2,562 2 2 2 $ 2,393 ? 2 2,363 $ 169 2 188 2 Balance $ 42,734 42,565 42,387 2 42,000 7. What was the annual market rate of interest on the date the bonds were issued? (Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).) Market rate of interest %