% P9-2 (similar to) Question Help 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 9% coupon rate. As a result of current interest rates, the bonds can be sold for $1,070 each before incurring flotation costs of $35 per bond. The firm is in the 30% 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 $ 1,035. (Round to the nearest dollar.) b. Using the bond's YTM, the before-tax cost of debt is %. (Round to two decimal places.) Question Viewer