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Temple - Midland, Inc. is issuing a $ 1 , 0 0 0 par value bond that pays 7 . 7 percent annual interest and

Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.7 percent annual interest and matures in 15 years. Investors are willing to pay $955 for the bond and Temple faces a tax rate of 28 percent. What is Temple's after-tax cost of debt on the bond

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