X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity: 14 Interest Expense Decrease in Carrying Value Cash Paid Sipped Date 01/01/2021 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 $ 11,880 11,880 11,880 11,880 11,880 $ 11,209 11,142 11,069 10,987 10,898 $ 671 738 811 893 Carrying Value $ 112,094 111,423 110, 686 109,874 108,982 108,000 Book 982 What is the annual stated interest rate on the bonds? Multiple Choice O 5% O 5.5% 10% o 11%