What is temples after-tax cost of debt on the bond

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Reference no: EM132025386

Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 8.2 percent annual interest and matures in 15 years.

Investors are willing to pay ?$949 for the bond and Temple faces a tax rate of 33 percent.

What is Temple's after-tax cost of debt on the bond?

Reference no: EM132025386

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