Temple-midland inc is issuing a 1000 par value bond that


Temple-Midland, Inc. is issuing a $1000 par value bond that pays 8.5% annual interest and matures in 15 years. Investors are willing to pay $949 for 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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Finance Basics: Temple-midland inc is issuing a 1000 par value bond that
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