Question
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 $950
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 $950 for the bond and Temple faces a tax rate of 34 percent.What is Temple's after-tax cost of debt on the bond?
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Management Science The Art Of Modeling With Spreadsheets
Authors: Stephen G. Powell, Kenneth R. Baker
3rd Edition
0470530677, 978-0470530672
