Payment Eash Payment Effective Interest Increase in Balance 1 2 3 4 5 6 225,000 225, eee 225,000 225,000 225,000 225,000 240,622 241, 247 241,896 242,572 243,275 244,006 15,622 16, 247 16,896 17,572 18,275 19,086 Outstanding Balance 6,615,542 6,031,164 6,047, 411 6,064,307 6,081,879 6,188,154 6,119,160 38 39 40 225,000 225, eee 225,000 291,625 294, 342 297,115 66,675 69, 342 72,115 7, 358,543 7,422,885 2, see, eee 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 mat Face amount Initi selling price 2 2 4 Interest is determined by what aproach 6.0 16.542 20 years Effective nterest rate G KA Annual interest rate Erective annual nterest rate 8 Eleone interestedente