Investors are willing to pay 953 for the bond and temple, Financial Management

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Investors are willing to pay 953 for the bond and temple

Cost of? debt) ?Temple-Midland, Inc. is issuing a 1000 par value bond that pays 8.4 percent annual interest and matures in 15 years. Investors are willing to pay ?$953 for the bond and Temple faces a tax rate of 35 percent. What is? Temple's after-tax cost of debt on the? bond?

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Financial Management: Investors are willing to pay 953 for the bond and temple

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