On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:

Required:
1. What is the face amount of the bonds?
2. What is the initial selling price of the bonds?
3. What is the term to maturity in years?
4. Interest is determined by what approach?
5. What is the stated annual interest rate?
6. What is the effective annual interest rate?
7. What is the total cash interest paid over the term to maturity?
8. What is the total effective interest expense recorded over the term to maturity?

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Payment 123456 38 39 40 Cash Payment 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 Effective Interest 331,364 331,932 332,528 333,155 333,813 334,503 389,107 392,562 396,191 Increase in Balance 11,364 11,932 12,528 13,155 13,813 14,503 69,107 72,562 76,191 Outstanding Balance 6,627,273 6,638,637 6,650,569 6,663,097 6,676,252 6,690,065 6,704,568 7,851,247 7,923,809 8,000,000