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On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on...

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Accounting

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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 1 2 3 4 5 6 213,000 213,000 213,000 213,000 213,000 213,000 227,789 228,380 228,995 229,635 230,300 230,992 14,789 15,380 15,995 16,635 17,100 17,992 Outstanding Balance 5,694,713 5,709,502 5,724,882 5,740,877 5,757,512 5,774,812 5,792,804 38 39 40 213,000 213,000 213,000 276,119 278,644 281,267 63,119 65,644 68,267 6,966,089 7,031.733 7.100,000 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

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