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Flotation costs and the cost of debt Currently, Warren Industries can sell 15-year, $1,000-par-value bonds paying annual interest at a 12% coupon rate. Because current market rates for similar bonds are just under 12%, Warren can sell its bonds for $1,060 each; Warren will incur flotation costs of $20 per bond. The firm is in the 23% tax bracket. a. Find the net proceeds from the sale of the bond, No: b. Calculate the before-tax and after-tax costs of debt. .. a. The net proceeds from the sale of the bond, Ng, is $ 1040. (Round to the nearest dollar.) b. The before-tax cost of debt is%. (Round to two decimal places.)