Flotation costs and the cost of debt Currently, Warren Industries can sell 20-year, $1,000-par-value bonds paying annual interest at a 14% coupon rate. Because current market rates for similar bonds are just under 14%, Warren can sell its bonds for $1,090 each; Warren will incur flotation costs of $25 per bond. The firm is in the 28% tax bracket. a. Find the net proceeds from the sale of the bond, Nd. b. Calculate the before-tax and after-tax costs of debt. a. The net proceeds from the sale of the bond, Nd, is $ (Round to the nearest dollar.) b. The before-tax cost of debt is [%. (Round to two decimal places.) The after-tax cost of debt is %. (Round to two decimal places.)