On January 1, 2018, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31.

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: caeh Effective Increaee in Outstanding Payment Payment Interest Balance Balance 5,324,920 1 216,000 230,99? 14,993 5,339,913 2 216,000 231,59? 15,59? 5,305,514 3 216,000 232,221 16,221 5,321,335 4 216,000 232,369 16,369 5,333,604 5 216,000 233,544 13,544 5,356,143 6 216,000 234,246 13,246 5,324,394 33 216,000 230,003 64,003 ?,064,202 39 216,000 232,563 66,563 7,130,390 40 216,000 235,230 69,230 7,200,000 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? 5. What is the stated annual interest rate'iI 6. What is the effective annual interest rate? 7. What is the total cash interest paid over the term to maturity? 3. What is the total effective interest expense recorded over the term to maturity? Initial selling price Term to maturity Effective annual interest rate Total cash interest paid Effective interest expense