Use the Following Information to Answer the Next 6 Questions

question 85

Multiple Choice

Use the following information to answer the next 6 questions:
X2 issued callable bonds on January 1,2015.The bonds pay interest annually on December 31 each year.X2's accountant has projected the following amortization schedule from issuance until maturity:

-What is the annual market interest rate on the bonds?

• A)3%.
• B)3.5%.
• C)6%.
• D)7%.