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(Cost of debt) Temple Midland, Inc. is issuing a $1,000 par value bond that pays 8.6 percent annual interest and matures in 15 years Investors

(Cost of debt) Temple Midland, Inc. is issuing a $1,000 par value bond that pays 8.6 percent annual interest and matures in 15 years Investors are willing to pay $955 for the bond and Tomple faces a tax rate of 19 percent. What is Temple's after tax cost of debt on the bond? The after-tax cost of debtis (Round to two decimal places)

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