Cost of debt using the approximation formula For the following $1.000-par-value bond, assuming annual interest payment and a 24% tax rate, calculate the after-tax cont to maturity using the approximation formula Life Underwriting fee $25 Discount ( - ) or promlum (+) - $20 Coupon Interest rate 9% 20 years The after-tax cost of financing using the approximation formula is % (Round to two decimal places) ed 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 $199,000 from a -9 bank, and to repay the loan ho will make 360 monthly payments (principal and interest) of $1,250,91 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. 211 a. What is the before taximerestre (per year) on Davidson? - What is the after taximerest rate that David is paying? 1. The before-tex terest rato (per year) on David's loan is % (Round to two decimal places.) 20