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Posted: **Sun May 08, 2022 3:56 pm**

: Cost Of Debt Temple Midland Inc Is Issuing A 1 000 Par Value Bond That Pays 7 2 Percent Annual Interest And Matures 1 (21.17 KiB) Viewed 41 times

(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.2 percent annual interest and matures in 15 years. Investors are willing to pay $950 for the bond and Temple faces a tax rate of 21 percent. What is Temple's after-tax cost of debt on the bond?