Tambien Corporation issued 10,000 $1,000 bonds on January 1, 2018. They have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.

Payment

Cash

Effective

Decrease in

Outstanding

Interest

Balance

Balance

11,487,747

1

400,000

344,632

55,368

11,432,379

2

400,000

342,971

57,029

11,375,350

3

400,000

341,261

58,739

11,316,611

4

400,000

What's the stated annual rate of interest on the bonds?

A.4%

B.8%

C.6%

D.3%