Cost of debt using both methods (YTM and the approximation formula) Currently, Warren Industries can sell 20-year, $1,000-par-value bonds paying annual interest at a 14% coupon rate. Because current market rates for similar bonds are just under 14%, Warren can sell its bonds for $1,030 each; Warren will incur flotation costs of $25 per bond. The firm is in the 24% tax bracket. a. Find the net proceeds from the sale of the bond, Nd. b. Calculate the bond's yield to maturity (YTM) to estimate the before-tax and after-tax costs of debt. c. Use the approximation formula to estimate the before-tax and after-tax costs of debt. Cost of debt using the approximation formula For the following $1,000-par-value bond, assuming annual interest payment and a 28% tax rate, calculate the after-tax cost to maturity using the approximation formula. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Life Underwriting fee $30 Discount (-) or premium (+) - $50 Coupon interest rate 8% 15 years The after-tax cost of financing using the approximation formula is %. (Round to two decimal places.)