CU P9-2 Cost of debt using both methods Currently, Warren Industries can sell 15-year, $1,000-par-value bonds paying annual interest at a 7% coupon rate. Because rent market rates for similar bonds are just under 7%, Warren can sell its bonds $1,010 each; Warren will incur flotation costs of $30 per bond in this process. The b. Show the cash flows from the firm's point of view over the maturity of the bort c. Calculate the before-tax and after-tax costs of debt. timate the before-tax and after the firm is in the 40% tax bracket. a. Find the net proceeds from sale of the bond, Nd