Currently, Warren Industries can sell 10 dash year ?, ?$1,000 ?-par-value bonds paying annual interest at...

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Currently, Warren Industries can sell 10 dash 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 ?$980 ?each; Warren will incurflotation costs of ?$20 per bond. The firm is in the 25 ?% taxbracket.
a.??Find the net proceeds from the sale of the? bond, Nd .
b.??Calculate the? bond's yield to maturity? (YTM?) to estimatethe? before-tax and? after-tax costs of debt.
c.??Use the approximation formula to estimate the? before-taxand? after-tax costs of debt.

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Currently, Warren Industries can sell 10 dash 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 ?$980 ?each; Warren will incurflotation costs of ?$20 per bond. The firm is in the 25 ?% taxbracket.a.??Find the net proceeds from the sale of the? bond, Nd .b.??Calculate the? bond's yield to maturity? (YTM?) to estimatethe? before-tax and? after-tax costs of debt.c.??Use the approximation formula to estimate the? before-taxand? after-tax costs of debt.