Cost of debt using both methods (YTM and the approximation formula)Currently, Warren Industries can sell 10 dash year , $1 000 -par-value bonds paying annual interest at a 15 % coupon rate. As a result of current interest rates, the bonds can be sold for $1 comma 060 each before incurring flotation costs of $20 per bond. The firm is in the 30 % tax bracket.