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Save (Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 8.2 percent annual interest and matures in 15 years. Investors
Save (Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 8.2 percent annual interest and matures in 15 years. Investors are willing to pay $947 for the bond and Temple faces a tax rate of 20 percent. What is Temple's after-tax cost of debt on the bond? The after-tax cost of debt is % (Round to two decimal places.)
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
12th Edition
0136096689, 978-0136096689
