After tax cost of debt Personal Finance Problem Belawans interested i, buying a new moto cydShe has deded to borrow the money to pay the S20,000 purchase price ofthe bike Seis in the 2% lederal income tax bracket She can either borrow the money at an irterestate of 7% from the motorcy e dealer orshe could take out a second mortgage on her hon e That mortgage would come with an interest rate of 9%Interest payments on the morlgage would be tax deductible for Bella, but interest payments on the lean from the motorcycle dealer coukd not be deducted on Bella's federal tax retum a. Caculate the ater-tax cost of borrowing from the motorcydle dealership b. Calculate the after tax cost of borrowing through a second mortgage on Bella's home c. Which source of borrowing is less costly for Bella? d. Is there any other consideration that Bella ought to think about when deciding which loan to take out to pay for the motoecycle? a. The after tax cost of borrowing tom motorcycle dealership is [)% (Round to te nearest whole percentage ) b. The aher-tax cost of bomrowing through a second montgage is%(Round to two decimal places) c. Which source of borrowing is less costly for Bella? (Select the best answer below) O A. Bella should borrow by taking the dealership loan B. C. D. Bela should bornow by taking the second mogage Both loans have the same 'ate of 28%, so Bela should choose the loan she bes best Bot,loans have the same rate of 28%, so Bela should not take ether loan d. is there any other consideration that Beilla ought to think about when deciding which loan to take out to pay for the motorcycle? (Select the best answer below Using the second home mortgage does put Bella at risk of losing her motorcydle if she is unable to make the mortgage peyments B. Using the motorcycle dealership loan does put Bella at risk of losing her home if she is unable to make the loan payments to select your answer(s)