The cost of Debt and Flotation Costs. Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 9% paid annually. The issue price will be $1.000. The tax rate 25. the flotation cost is 2% of the issue proceeds, then what is the after-tax cost of debt? Round your answer to two decimal places mited What if the notation costs were 10% of the bond issue? Round your answer to two decimal places. ons %