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Currently, Warren Industries can sell 20 dash year​, ​$1, 000​-par-value bonds paying annual interest at a...

Currently, Warren Industries can sell 20 dash year​, ​$1, 000​-par-value bonds paying annual interest at a 11​% coupon rate. Because current market rates for similar bonds are just under 11​%, Warren can sell its bonds for ​$1 ,050 ​each; Warren will incur flotation costs of ​$30 per bond. The firm is in the 29​% tax bracket.

a.  Find the net proceeds from the sale of the​ bond.

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.

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used.

NEED HELP WITH FINANCIAL CALCULATOR, LET ME KNOW

jeff jeffy answered 3 months ago
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