Cost of debt using both methods (YTM and the approximation formula) Currently, Warren Industries can sell 20-year, $1,000-par-value bonds paying annual interest at a 13% coupon rate. Because current market rates for similar bonds are just under 13%, Warren can sell its bonds for $1,050 each, Warren will incur flotation costs of $25 per bond. The firm is in the 22% 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. a. The net proceeds from the sale of the bond, Na, is $1025), (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.)