Question
Temple-Midland, Inc. is issuing a $1000 par value bond that pays 7.9 percent annual interest and matures in 15 years. Investors are willing to pay
Temple-Midland, Inc. is issuing a $1000 par value bond that pays 7.9 percent annual interest and matures in 15 years. Investors are willing to pay $948 for the bond and Temple faces a tax rate of 31 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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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
8th Edition
0814406807, 978-0814406809
