Flotation costs and the cost of debt Currently, Warren Industries can sell 15-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 $1,010 each; Warren will incur flotation costs of $20 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