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 Payment Effective Interest Increase in Balance Payment 1 2 3 4 5 6 308,000 308,000 308,000 308,000 308,000 308,000 318,938 319,484 320,059 320,662 321, 295 321,959 10,938 11,484 12,059 12,662 13,295 13,959 Outstanding Balance 6,378,750 6,389, 688 6,401,172 6,413,231 6,425,893 6,439,188 6,453,147 38 39 40 308,000 308,000 308,000 374,516 377, 841 381,330 66,516 69,841 73,330 7,556,829 7,626,670 7,700,000 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? 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. 3. Initial selling price Term to maturity Interest is determined by what approach? years 4. 5. Annual interest rate % 6. Effective annual interest rate % 7. Total cash interest paid 8 8. Effective interest expense