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 11%

coupon rate. Because current market rates for similar bonds are just under 11%, Warren can sell its bonds for $1,030 each; Warren will incur flotation costs of $25 per bond. The firm is in the

28% 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 both methods (YTM and the approximation formula) Currently, Warren Industries can sell 15-year, $1,000-par-value bonds paying annual interest at a 11% coupon rate. Because current market rates for similar bonds are just under 11%, Warren can sell its bonds for $1,030 each; Warren will incur flotation costs of $25 per bond. The firm is in the 28% 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 $ 1005. (Round to the nearest dollar.) b. Using the bond's YTM, the before-tax cost of debt is %. (Round to two decimal places.) 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 11% coupon rate. Because current market rates for similar bonds are just under 11%, Warren can sell its bonds for $1,030 each; Warren will incur flotation costs of $25 per bond. The firm is in the 28% 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 $ 1005. (Round to the nearest dollar.) b. Using the bond's YTM, the before-tax cost of debt is %. (Round to two decimal places.)