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: Cash Effective Increase in Outstanding Balance Payment Payment Balance 6,627,273 6,638,637 6,650,569 6,663,097 6,676,252 6,690,065 6,704,568 Interest 2 4 6 320,000 320,000 320,000 320,000 320,000 320,000 331,364 331,932 332,528 333,155 333,813 334,503 11,364 11,932 12,528 13,155 13,813 14,503 38 39 40 320,000 320,000 320,000 389,107 392,562 396,191 69,107 72,562 76,191 7,851,247 7,923,809 8,000,000 Required 1. What is the face amount of the bonds? ace amount 2. What is the initial selling price of the bonds? Initial selling price 3. What is the term to maturity in years? Term to maturity years 4. Interest is determined by what approach? Straight-line approach Effective interest rate