The Cost of Debt and Flotation Costs. Suppose a company will issue new 20year sebt wht a par value of \$1,000 and a coupon rate of 85, paid annualy. The issue price we be $1,000. The tax rate is 25\%. If the fotatien cost is 2% of the iswe proceeds, then what is the after-tax cest of cebt? Round your answer to two decimal places. What if the flotatien costs were 11% o the bond issue? Round your ansner to teo decimal placts