=+LG 3 P9–3 Before-tax cost of debt and after-tax cost of debt Jim Paige is opening his own restaurant, and he is taking out a 10-year mortgage. Jim will borrow $400,000 from a bank, and to repay the loan he will make 120 monthly payments (principal and interest) of $4,420.82 per month over the next 10 years. Jim is in the 30% tax bracket.