Question
Temple-Midland, Inc. is issuing a $1000par value bond that pays 8.5%annual interest and matures in 15years. Investors are willing to pay $949for the bond and
Temple-Midland, Inc. is issuing a $1000par value bond that pays 8.5%annual interest and matures in 15years. Investors are willing to pay $949for the bond and Temple faces a tax rate of 20%. What is Temple's after-tax cost of debt on the bond?
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
