Question: Cost of debt using both methods (YTM and the approximation formula) Currently, Warren industries can sell 15-year, $1000-par-value bonds paying annual interest at a 13%

Cost of debt using both methods (YTM and the approximation formula) Currently, Warren industries can sell 15-year, $1000-par-value bonds paying annual interest at a 13% coupon rate. As aresult of current interest rates, the bonds can be sold for $1,080 each before incurring flotation costs of $30 per bond. The firm is in the 30% tax bracket.

Cost of debt using both methods (YTM and the approximation formula) Currently,

Warren industries can sell 15-year, $1000-par-value bonds paying annual interest at a

13% coupon rate. As aresult of current interest rates, the bonds can

be sold for $1,080 each before incurring flotation costs of $30 per

bond. The firm is in the 30% tax bracket. a. The net

a. The net proceeds from the sale of the bond, Nd, is $. (Round to the nearest dollar)

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