On January 1, 2016, 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
				6,095,749
1	228,000	243,830	15,830	6,111,579
2	228,000	244,463	16,463	6,128,042
3	228,000	245,122	17,122	6,145,164
4	228,000	245,807	17,807	6,162,971
5	228,000	246,519	18,519	6,181,490
6	228,000	247,260	19,260	6,200,750
~	~	~	~	~
~	~	~	~	~
~	~	~	~	~
38	228,000	295,564	67,564	7,456,656
39	228,000	298,266	70,266	7,526,922
40	228,000	301,078	73,078	7,600,000

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?

	Straight-line approach
	Effective interest rate

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?