Cost of debt using both methods (YTM and the approximation formula) Currently, Warren Industries can sell 10-yea just under 8%, Warren can sell its bonds for $1,100 each; Warren will incur flotation costs of $35 per bond. The firm is in t 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.