X2 issued callable bonds on January 1, 2012. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity:

Date	Cash Paid	Interest Expense	Decrease in Carrying Value	Carrying Value
1/1/12				$213,192
6/30/12	$11,000	$9,594	1,406	211,786
12/31/12	$11,000	$9,530	1,470	210,316
6/30/13	$11,000	$9,464	1,536	208,780
12/31/13	$11,000	$9,395	1,605	207,175
6/30/14	$11,000	$9,323	1,677	205,498
12/31/14	$11,000	$9,247	1,753	203,745
6/30/15	$11,000	$9,169	1,831	201,914
12/31/15	$11,000	$9,086	1,914	200,000

What is the annual stated interest rate on the bonds?

A. 5.5%

B. 9%

C. 4%

D.11%