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Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.2 percent annual interest and matures in 15 years. Investors are willing to pay

Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.2 percent annual interest and matures in 15 years. Investors are willing to pay $951 for the bond and Temple faces a tax rate of 21 percent. What is Temple's after tax cost of debt on the bond? (Round to two decimal places)

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