Compute What is Temple after-tax cost of debt on the bond

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Question 1: A company is issuing a $1,000 par value bond that pays 8.5 percent annual interest and matures in 15 years. Investors are willing to pay $949 for the bond and Temple faces a tax rate of 28 percent. What is Temple's after-tax cost of debt on the bond?

Reference no: EM132553454

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