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 $970 each; Warren will incur flotation costs of $25 per bond. The firm is in the 25% 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.)