On January 1, 2018, 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
								6,286,574
1		370,000		377,194		7,194		6,293,768
2		370,000		377,626		7,626		6,301,394
3		370,000		378,084		8,084		6,309,478
4		370,000		378,569		8,569		6,318,047
5		370,000		379,083		9,083		6,327,130
6		370,000		379,628		9,628		6,336,758
~		~		~		~		~
~		~		~		~		~
~		~		~		~		~
38		370,000		432,132		62,132		7,264,327
39		370,000		435,860		65,860		7,330,187
40		370,000		439,813		69,813		7,400,000

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? 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?

Required 1:

1) face amount

2) intial selling price

3) Term to maturity

4) Interest is determined by what approach?

5) Annual interest rate

6) Effective annual interest rate

7) Total cash interest paid

8) Effective interest expense