Before-tax cost of debt and after-tax cost of debt David Abbot is buying a new house, and he is taking out a 30-year mortgage. David will borrow $205,000 from a bank and to repay the loan he will make 360 monthly payments (principal and interest) of $1.27157 per month over the next 30 years. David can deduct interest payments on his mortgage from his taxable income, and based on his income, David is in the 32% tax bracket a. What is the before tax interest rate (per year) on David's loan? b. What is the atter tax interest rate that David is paying? a. The before-tax interest rate (per year) on David's loan is % (Round to two deomal places) b. The after-tax interest rate that David is paying % (Round to two decimal places.)