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: Interest Cash Paid Expense Decrease in Carrying Value Date 01/01/2021 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 $ 7,280 7,280 7,280 7,280 7,280 $6,423 6,376 6,326 6,274 6,218 $ 857 904 954 1,006 1,062 Carrying Value $116,783 115,926 115,022 114,068 113,062 112,000 What is the annual market interest rate on the bonds