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 bellow:

Payment	Cash Payment	Effective Interest	Increase in Balance	Outstanding Balance
				6,978,029
1	261,000	279,121	18,121	6,996,150
2	261,000	279,846	18,846	7,014,996
3	261,000	280,600	19,600	7,034,596
4	261,000	281,384	20,384	7,054,980
5	261,000	282,199	21,199	7,076,179
6	261,000	283,047	22,047	7,098,226
38	261,000	338,343	77,343	8,545,913
39	261,000	341,437	80,437	8,616,350
40	261,000	344,650	83,650	8,700,000

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?