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?

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 Effective Increase in Outstanding Payment Payment Interest Balance Balance 6,647, 387 1 292,000 302, 369 10,369 6,057, 756 292,000 302,888 10,888 6,068, 644 292,000 303, 432 11, 432 6,080, 076 292,000 304, 004 12,004 6,092, 080 292,000 304, 604 12,604 6, 104,684 292,000 305, 234 13, 234 6, 117,918 2 3 4 5 6 38 39 40 292,000 292,000 292,000 355, 060 358, 213 361, 520 63,060 66, 213 69,520 7, 164, 267 7, 230, 480 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. 2. 3. years 4. Face amount Initial selling price Term to maturity Interest is determined by what approach? Annual interest rate Effective annual interest rate Total cash interest paid Effective interest expense 5. 96 6. 96 7. 8