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cost of debt the answer i have is wrong. Temple-Midland, Inc. is issuing a $1, 000 par value bond that pays 8.8 percent annual interest

cost of debt

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Temple-Midland, Inc. is issuing a $1, 000 par value bond that pays 8.8 percent annual interest and matures in 15 years. Investors are willing to pay $952 for the bond and Temple faces a tax rate of 29 percent. What is Temple's after-tax cost of debt on the bond? The after-tax cost of debt is 5.70%. (Round to two decimal places.)

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