Before tax cost of debt and after tax cost of debt David Abbot is buying a new house and he is taking out 30 year mortgage. David will borrow $190.000 from a bank, and to repay the loan he will make 360 monthly payments principal and interest of $1.213.0 per month over the next 30 years David can deduct interest payments on his mortgage from his taxable income, and based on this income, David is in the 30% tax bracket a. What is the before tax interest rate (per year) on David's loan? b. What is the after-tax interest rate that David is paying