X2 issued callable bonds on January 1, 2018. The bonds pay interest annually on December 31 each year. X2's accountam has projected the following amortization schedule from issuance until maturity: Date Cash Interest Decrease in Carrying Paid Expense Carrying. Value Value 1/1/2018 $104,212 12/31/2018 $7,000 $6,253 $747 103,465 12/31/2019 12/31/2020 7,000 7,000 6,208 792 102,673 6,160 840 101,833 12/31/2021 7,000 6,110 890 100,943 12/31/2022 7,000 6,057 943 100,000 What is the annual stated interest rate on the bonds? Select one: OA. 3.5%. OB. 7%. C. 3%. OD. 6%