Solution-Temple after-tax cost of debt on the bond

Temple after-tax cost of debt on the bond

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Reference no: EM131332345

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?

Reference no: EM131332345

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Temple after-tax cost of debt on the bond : 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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Temple after-tax cost of debt on the bond

Reference no: EM131332345

Reference no: EM131332345

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