Shaun White Adventure Company (SWAC) issued callable bonds on January 1, 2024. SWAC's accountant has projected the following amortization schedule from issuance until maturity:

Date	Cash Paid	Interest Expense	Increase in Carrying Value	Carrying Value
01/01/2024				$219,037
06/30/2024	$13,800	$15,333	$1,533	220,570
12/31/2024	13,800	15,440	1,640	222,210
06/30/2025	13,800	15,555	1,755	223,965
12/31/2025	13,800	15,678	1,878	225,843
06/30/2026	13,800	15,809	2,009	227,852
12/31/2026	13,800	15,948	2,148	230,000

What is the annual market interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.)

A. 14%

B. 12%

C. 6%

D. 13%