Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Increase in Interest Carrying Carrying Date 01/01/2021 Cash Paid Expense Value Value $284,773 06/30/2021 $12,000 $14,239 $2,239 287,012 12/31/2021 12,000 14,351 2,351 289,363 06/30/2022 12,000 14,468 2,468 291,831 12/31/2022 12,000 14,592 2,592 294,423 06/30/2023 12/31/2023 12,000 14,721 2,721 297,144 12,000 14,856 2,856 300,000 What is the annual market interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) Multiple Choice 8%. 4%.