Q1. Cost of Debt using both methods of approximation and calculation with cash flows. Currently, Coast Gulf Club can sell 15-year, $1,000-par-value bonds paying annual interest at a 12% coupon rate. As a result of current interest rates, the bonds can be sold for $1,010 each; flotation costs of $30 per bond will be incurred in this process. The firm is in the 21% tax bracket. 2. Show the cash flows from the firm's point of view over the maturity of the bond. 3. As v ulate the before-tax and after-tax costs of debt. 4. Use the approximation formula to estimate the before-tax and after-tax costs of debt