Tomkin Library System issues $$5$ million in bonds on January $1,2021$ that pay interest semi$-$annually on June $30$ and December $31.$ A portion of the bond amortization schedule appears below:

Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value

$01/01/2021$ $ $5,500,000$

$06/30/2021$ $ $250,000$ $ $220,000$ $ $30,0005,470,000$

$12/31/2021250,000218,80031,2005,438,800$

What is the stated annual interest rate?

Group of answer choices

$8\%.$

$10\%.$

$4\%.$

$5\%.$