Cost of debt using both methods (YTM and the approximation formula)Currently, Warren Industries can sell 15 dash year15-year, $1 comma 0001,000-par-value bonds paying annual interest at a 77% coupon rate. Because current market rates for similar bonds are just under 77%, Warren can sell its bonds for $1 comma 0101,010 each; Warren will incur flotation costs of $3030 per bond. The firm is in the 2121% tax bracket. a.Find the net proceeds from the sale of the bond, Upper N Subscript dNd. 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.The net proceeds from the sale of the bond, Upper N Subscript dNd, is $nothing. (Round to the nearest dollar.)

P9-2 (book/static) := Question Help | Cost of debt using both methods (YTM and the approximation formula) Currently, Warren Industries can sell 15-year, $1,000-par-value bonds paying annual interest at a 7% coupon rate. Because current market rates for similar bonds are just under 7%, Warren can sell its bonds for $1,010 each; Warren will incur flotation costs of $30 per bond. The firm is in the 21% 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. a. The net proceeds from the sale of the bond, Nd, is $ (Round to the nearest dollar)