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Jimstan & Jimstan Corp. can sell a new 10-year bond with an annual coupon of 5.4% and a face value of $1,000 for $1,127.9. The

Jimstan & Jimstan Corp. can sell a new 10-year bond with an annual coupon of 5.4% and a face value of $1,000 for $1,127.9. The company will incur flotation costs of $40 per bond and has a tax rate of 28%.

(1) What are the net proceeds from selling the bond?

(2) What is the company's pre-tax cost of debt?

(3) What is the company's after-tax cost of debt?

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