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Problem 14-4 Bond amortization schedule (L014-2] On January 1, 2018. Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December
Problem 14-4 Bond amortization schedule (L014-2] On January 1, 2018. 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 252,00 252.000 252.000 252.000 252.000 252.000 269,496 270, 196 270,924 271,681 272.468 273, 27 17.496 11.196 18,924 19,681 20,458 21.287 Outstanding Balance 6,737,407 6,754,90 623,999 6,792.623 6,811,784 5,853.459 252. 252, 252, 74,676 77.653 329,663 332,769 8,241, 558 8,319, 231 3,600, 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? 11 Face amount alseling price Termo maturity Interest is determined by what approach? 5 Ant 7 8. Total ch est paid Efective interest expens
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