Flotation costs and the cost of debt Currently, Warren Industries can sell 10-year, $1,000-par-value bonds paying annual interest at a 13% coupon rate. Because current market rates for similar bonds are just under 13%, Warren can sell its bonds for $950 each; Warren will incur flotation costs of $35 per bond. The firm is in the 25% 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.) 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.)