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: Cash Payment Effective Interest Increase in Balance Payment HNM?? 228,000 228,000 228,000 228,000 228,000 228,000 243,830 244,463 245, 122 245,807 246,519 247,260 15,830 16,463 17,122 17,807 18,519 19,260 Outstanding Balance 6,095, 749 6,111,579 6, 128,042 6, 145, 164 6,162,971 6,181,490 6,200, 750 4 5 6 22 38 39 40 228,000 228,000 228,000 295,564 298,266 301, 078 67,564 70,266 73, 078 7,456,656 7,526,922 7,600,000 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. 2. 3. Face amount Initial selling price Term to maturity Interest is determined by what approach? Annual interest rate years 4. % Effective annual interest rate % 5. 6. 7. 8. Total cash interest paid Effective interest expense