On January 1, 2024, 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 Payment Interest Increase in Balance Outstanding Balance 6,015,542 1 225,000 240,622 15,622 6,031,164 2 225,000 241,247 16,247 6,047,411 3 225,000 241,896 16,896 6,064,307 4 225,000 242,572 17,572 6,081,879 225,000 243,275 18,275 6,100,154 6 225,000 244,006 19,006 6,119,160 38 39 40 225,000 291,675 66,675 7,358,543 225,000 294,342 69,342 7,427,885 225,000 297,115 72,115 7,500,000 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. Initial selling price 3. Term to maturity 4. Interest is determined by what approach? 5. Stated annual interest rate 6. Effective annual interest rate 7. Total cash interest paid 8. Effective interest expense years % %