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 9% coupon rate. As a result of current interest rates, the bonds can be sold for $1,100 each before incurring flotation costs of $35 per bond. The firm is in the 35% tax bracket. a. Find the net proceeds from the sale of the bond, No. 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. a. What are the net proceeds from the sale of the bond, N.? $(Round to the nearest dollar.) b. Using the bond's YTM, what is the before-tax cost of debt? % (Round to two decimal places.) Using the bond's YTM, what is the after-tax cost of debt? % (Round to two decimal places.) c. Using the approximation formula, what is the before-tax cost of debt? % (Round to two decimal places.) Using the approximation formula, what is the after-tax cost of debt? % (Round to two decimal places.)