Flotation costs and the cost of debt Currently, Warren Industries can sell 10-year, $1,000-par-value bonds paying annual interest at a 8% coupon rate. Because current market rates for similar bonds are just under 8%, Warren can sell its bonds for $1,040 each; Warren will incur flotation costs of $25 per bond. The firm is in the 21% 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.)