Flotation costs and the cost of debt Currently, Warren Industries can sell $15-$year, $$1,000-$par$-$value bonds paying annual interest at a $8\%$ coupon rate. Because current market rates for similar bonds are just under $8\%,$ Warren can sell its bonds for $$1,100$ each; Warren will incur flotation costs of $$25$ per bond. The firm is in the $26\%$ 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.$)$