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

annual interest at a $12\%$ coupon rate. Because current market rates for similar bonds are just under $12\%,$ Warren can

sell its bonds for $$1,100$ each; Warren will incur flotation costs of $$30$ per bond. The firm is in the $27\%$ tax bracket.

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

b$.$ Calculate the before$-$tax and after$-$tax costs of debt. Round to two decimal$$ places