Flotation costs and the cost of debt Currently, Warren Industries can sell $15-$year, $$1,000-$par$-$value bonds paying

annual interest at a $15\%$ coupon rate. Because current market rates for similar bonds are just under $15\%,$ Warren can

sell its bonds for $$950$ each; Warren will incur flotation costs of $$30$ per bond. The firm is in the $25\%$ tax bracket.

a$.$ The net proceeds from the sale of the bond, $N_d,$ is $$.($Round to the nearest dollar.$)$

b$.$ The before$-$tax cost of debt is $\%.($Round to two decimal places.$)$

c$.$ The after$-$tax cost of debt is $\%.($Round to two decimal places.$)$