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 $1,020 each; Warren will incur flotation costs of $25 per bond. The firm is in the 29% 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. C... a. The net proceeds from the sale of the bond, Ng, is $. (Round to the nearest dollar.) a. The net proceeds from the sale of the bond, Ng, is $ 1075. (Round to the nearest dollar.) b. Using the bond's YTM, the before-tax cost of debt is 11.69 %. (Round to two decimal places.) Using the bond's YTM, the after-tax cost of debt is 8.65 %. (Round to two decimal places.) c. Using the approximation formula, the before-tax cost of debt is 11.81%. (Round to two decimal places.) Using the approximation formula, the after-tax cost of debt is 8.74%. (Round to two decimal places.)