Flotation costs and the cost of debt Currently, Warren Industries can sell 15-year $1,000-par-value bonds paying annual interest at a 9% coupon rate Because current market rates for similar bonds are just under 9%, Warren can sell its bonds for 51,080 each, Warren will incur flotation costs of $30 per bond. The firm is in the 23% tax bracket a. Find the net proceeds from the sale of the bond, No: b. Calculate the before-tax and after-tax costs of debt