On January 1, 2021, 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 1 2 3 4 5 6 243,000 243,000 243,000 243,000 243,000 243,000 259,871 260,546 261,248 261,978 262,737 263,527 16,871 17,546 18,248 18,978 19,737 20,527 Outstanding Balance 6,496,785 6,513,656 6,531,202 6,549,450 6,568,428 6,588,165 6,608,692 N 2 22 N N N 38 39 40 243,000 243,000 243,000 315,009 317,889 320,887 72,009 74,889 77,887 7,947, 224 8,022,113 8,100,000 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? 3 years 1. Face amount 2. Initial 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 % % 8