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 $$1,010$

each; Warren will incur flotation costs of $$30$ per bond. The firm is in the $24\%$ tax bracket.

a$.$ Find the net proceeds from the sale of the bond, $N_d.$

b$.$ Calculate the before$-$tax and after$-$tax costs of debt.

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.$)$

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