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14-9. (Computing the cost of debt) Temple-Midland, Inc., is issuing a $1,000 par value bond that pays 8 percent annual interest and matures in 15

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14-9. (Computing the cost of debt) Temple-Midland, Inc., is issuing a $1,000 par value bond that pays 8 percent annual interest and matures in 15 years. Investors are will- ing to pay $950 for the bond, and Temple faces a tax rate of 35 percent. What is Temple's after-tax cost of debt on the bond where interest is paid semiannually

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