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: Decrease in Interest Carrying Carrying Date 01/01/2021 12/31/2021 Cash Paid Expense Value Value $111,569 $6,955 $6,136 $ 819 110,750 12/31/2022 6,955 6,091 864 109,887 12/31/2023 6,955 6,044 911 108,975 12/31/2024 6,955 5,994 961 108,014 12/31/2025 6,955 5,941 1,014 107,000 What is the annual market interest rate on the bonds? Multiple Choice 5.5%. 6.5%.