Problem 14.4 Bond amortization schedule (LO14-2] 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: Cash Effective Increase in Outstanding Payment Payment Interest Balance Balance 6,256,164 234,000 250, 247 16, 247 6,272,411 234,000 250,896 16,896 6,289, 307 234,000 251,572 17,572 6, 306,879 234,000 252, 275 18,275 6,325,154 234,000 253,086 19,096 6,344,169 234,000 253, 766 19,766 6,363,926 234,000 234,000 234,000 303, 342 306,115 309,000 69,342 72,115 75,000 7,652,885 7,725,000 7,800,000 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 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. 2. 3. years Face amount Initial selling price Term to maturity Interest is determined by what approach? Annual interest rate Effective annual interest rate Total cash interest paid Effective interest expense % % 5. 6. 7. 8