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Part $1$

Flotation costs and the cost of debt$$Currently$,$ Warren Industries can sell $10$ dash year$,$$$1$ comma $000-$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 $$$$1$ comma $040$each; Warren will incur flotation costs of $$$$30$ per bond. The firm is in the $29\%$ tax bracket.

a$.$Find the net proceeds from the sale of the$$ bond, Upper N Subscript d$.$

b$.$Calculate the$$ before$-$tax and$$ after$-$tax costs of debt.

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Part $1$

a$.$The net proceeds from the sale of the$$ bond, Upper N Subscript d$,$ is $$$

$$

enter your response here. $($Round to the nearest$$ dollar.$)$