ebook The cost of Debt and Flotation Costs. Suppose a company will issue new 20-year debt with a par value of $1.000 and a coupon rate of 7. ad annually. The issue price will be $1,000, The taxation cost is 3% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tar shield from the amortization of flotation cost Round your answer to two decimal What if the notation costs were 10% of the bond issue? Round your answer to two decimal places