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 Outstanding Balance Balance. 6,237,407 252,000 269,496 17,496 6,754,903 2 252,000 270,196 18,196 6,773,099 3 252,000 270,924 18,924 6,792,023 252,000 271,681 19,681 6,811,704 252,000 272,468 20,468 6,832,172 252,000 273,287 21,287 6,853,459 38 252,000 326,676 74,676 8,241,568 39 252,000 329,663 77,663 8,319,231 40 252,000 332,769 80,769 8,400,000 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? < Prev 2 of 2 Next