9. 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.) b.Using the bond's YTM, the before-tax cost of debt is __%. (Round to two decimal places.) Using the bond's YTM, the after-tax cost of debt is __%. (Round to two decimal places.) c.Using the approximation formula, the before-tax cost of debt is __%. (Round to two decimal places.) Using the approximation formula, the after-tax cost of debt is __%. (Round to two decimal places.)