Before-tax cost of debtand after-tax cost of debt David Abbot is buying a new house, and e is taking out a 30-year mortgage. David will borrow $200,000 from a bank, and to repay the loan he will make 360 monthly payments (principal and interest) of $1,199.10 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 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? a. The before-tax interest rate (per year) on David's loan is -8.75 %, (Round to one decimal place.) b. The after-tax interest rate that David is paying is 6.13 Round to two decimal places.) 20 21 23 24 25 26 27 28 30 31 32 35 Enter your answer in each of the answer boxes