[solution] » (Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.1 percent annu
(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.1 percent annual interest and matures in 15 years. Investors are willing to pay $948 for the bond and Temple faces a tax rate of 29 percent. What is Temple's after-tax cost of debt on the bond?
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This question was answered on: Oct 14, 2020
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