Question
(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.6 percent annual interest and matures in 15 years. Investors are
(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.6 percent annual interest and matures in 15 years. Investors are willing to pay $947 for the bond and Temple faces a tax rate of 23 percent.
What is Temple's after-tax cost of debt on the bond?
(Round to two decimal places.)
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Finance For IT Decision Makers
Authors: Michael Blackstaff
1st Edition
3540762329, 978-3540762324
