Homework: Chapter 9 The Cost of Capital Save Score: 12 of 20 pts 3 of 7 (6 complete) HW Score: 75.5%, 75.5 of 100 pts % P9-2 (similar to) Question Help Cost of debt using both methods (YTM and the approximation formula) Currently, Warren Industries can sell 10-year, $1,000-par-value bonds paying annual interest at a 14% coupon rate. Because current market rates for similar bonds are just under 14%, Warren can sell its bonds for $1,090 each; Warren will incur flotation costs of $20 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, No, is $ . (Round to the nearest dollar.)