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Please answer part a,b and c Ch9 q2 Cost of debt using both methods (YTM and the approximation formula) $1,000 par value bonds paying annual

Please answer part a,b and c
Ch9 q2 image text in transcribed
Cost of debt using both methods (YTM and the approximation formula) $1,000 par value bonds paying annual interest at a 7% coupon Warren can sell its bonds for S 1,060 each; Warren Currenty, Warren Industries can sell 15-year, rate. Because current market rates for similar bonds are just under 7%, will incur flotation costs of $35 per bond. The firm is in the 29% tax bracket. a. Find the net proceeds from the sale of the bond. Na b. Calculate the bond's yield to maturity (YTM) to estimate the before-tax and after-tax costs of debt. c. Use the approximation formute to estimate the before-tax and after-tax costs of debt. a. The net proceeds from the sale of the bond. Ndi is I. (Round to the nearest dollar.)

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