Discount-Mart issues $12 million in bonds on January 1, 2021. The bonds have a eight-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Cash Paid Interest Expense Increase in Carrying Value $ 40,648 Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $720,000 720,000 720,000 720,000 $760, 648 763,494 766,538 769,796 Carrying Value $ 10,866,402 10,907,050 10,950,544 10,997,082 11,046,878 43,494 46,538 49,796 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your Intermediate calculations.) Multiple Choice 13% 12% 6% 14% Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Interest Expense Increase in Carrying Value Carrying Cash Paid Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $18,000 18,000 18,000 18,000 18,000 18,000 $20,538 20,690 20,852 21,023 21, 204 21,395 $2,538 2,690 2,852 3,023 3,204 3,395 $ 342,298 344,836 347,526 350, 378 353,401 356, 605 360,000 What is the annual stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your Intermediate calculations.) Multiple Choice 10%. O 5% O 11%. O 12%. Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Cash Paid Interest Expense Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $8,800 8,800 8,800 8,800 8,800 8,800 $10,442 10,524 10,610 10,700 10,795 10,896 $1,642 1,724 1,810 1,900 1,995 2,096 Carrying Value $ 208,833 210,475 212,199 214,009 215,909 217,904 220,000 What is the annual market interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your Intermediate calculations.) Multiple Choice O 8% O 10%. 4%. O 9%