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		Outstanding Balance
								6,047,387
1		292,000		302,369		10,369		6,057,756
2		292,000		302,888		10,888		6,068,644
3		292,000		303,432		11,432		6,080,076
4		292,000		304,004		12,004		6,092,080
5		292,000		304,604		12,604		6,104,684
6		292,000		305,234		13,234		6,117,918
~		~		~		~		~
~		~		~		~		~
~		~		~		~		~
38		292,000		355,060		63,060		7,164,267
39		292,000		358,213		66,213		7,230,480
40		292,000		361,520		69,520		7,300,000

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?

1. Face amount 2. 3. Initial selling price Term to maturity Interest is determined by what approach? years 4. . 01 Annual interest rate % 6. Effective annual interest rate % 7. Total cash interest paid 8. Effective interest expense