On January 1, 2013, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:

Payment	Cash Payment			Effective Interest			Increase in Balance			Outstanding Balance
											6,978,029
1		261,000			279,121			18,121			6,996,150
2		261,000			279,846			18,846			7,014,996
3		261,000			280,600			19,600			7,034,596
4		261,000			281,384			20,384			7,054,980
5		261,000			282,199			21,199			7,076,179
6		261,000			283,047			22,047			7,098,226
~		~			~			~			~
~		~			~			~			~
~		~			~			~			~
38		261,000			338,343			77,343			8,535,913
39		261,000			341,437			80,437			8,616,350
40		261,000			344,650			83,650			8,700,000

Required 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?

5.

What is the stated annual interest rate?

7.	What is the total cash interest paid over the term to maturity?

.

6.	What is the effective annual interest rate?

What is the effective annual interest rate?

8.	What is the total effective interest expense recorded over the term to maturity?