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(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 8.1% annual...

(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 8.1% annual interest and matures in 15 years. Investors are willing to pay $948 for the bond and Temple faces a tax rate of 32%. What is Temple's after-tax cost of debt on the bond?

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jeff jeffy answered 7 months ago
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