On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 December 31. Portions of the bond amortization schedule appear below: Cash Payment Payment Effective Interest Increase in Balance 1 2 3 4 5 6 216,000 216,000 216,000 216,000 216,000 216,000 230,997 231,597 232,221 232,869 233,544 234, 246 14,997 15,597 16,221 16,869 17,544 18, 246 Outstanding Balance 5,774,920 5,789, 917 5,805,514 5,821,735 5,838,604 5,856, 148 5,874,394 38 39 40 216,000 216,000 216,000 280,008 282,568 285,230 64,008 66,568 69,230 7,064,202 7,130, 770 7,200,000 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. 5. % 6. 7. Effective annual interest rate Total cash interest paid Effective interest expense 8