Sun City issues $47 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below:   Cash paid Interest expense Decrease in carrying value Carrying value   Date           01/01/2021       51,324,372   06/30/2021 $2,350,000 $2,309,597 $40,403 51,283,969   12/31/2021 2,350,000 2,307,779 42,221 51,241,748               What is the stated annual interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.) Stated annual interest rate   % What is the market annual interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.) Market annual interest rate   %   6. What is the total cash paid for interest assuming the bonds mature in 20 years? Interest paid

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A:

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