Question: need help studying, i will give a thumbs up. On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June

need help studying, i will give a thumbs up.
need help studying, i will give a thumbs up. On January 1,
2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on

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 2 316,000 316,000 316,000 316,000 316,000 116,000 327,222 327,283 328, 372 328,990 329,640 330,322 11,222 11,783 12,372 12,990 13,640 14,322 Outstanding Balance 6,544, 432 6,555, 654 6,567,437 6,579,809 6,592,799 6,606,439 6,620,761 5 38 39 40 316,000 316,00 316,00 354,243 387,655 391,243 68,243 71,655 75,243 7,753,102 7,824,757 7,900,000 Required: 1. What is the face a nount 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. 2 3. 20 years 4. Face amount Initial selling price Term to maturity Interest is determined by what approach? Effective interest rate Annual interest rate Effective annual intefest rate Total cash interest paid Effective interest expense 5. % 6. % 7 8

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