Question: please answer all parts Cost of debt using both methods (YTM and the approximation formula) Currently, Warren Industries can S 20-year, $1,000-par-value bonds paying annual

please answer all parts

Cost of debt using both methods (YTM and the approximation formula) Currently, Warren Industries can S 20-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 $970 each; Warren will incur flotation costs of $2C bond. The firm is in the 29% 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 S (Round to the nearest dollar.)

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