P9-3 Before-tax cost of debt and after-tax cost of debt Jim Paige is opening his own res- taurant, and he is taking out a 10-year mortgage. Jim will borrow $400,000 from a bank, and to repay the loan he will make 120 monthly payments (principal and inter- est) of $4,420.82 per month over the next 10 years. Jim is in the 30% tax bracket. a. What is the before-tax interest rate (per year) on Jim's loan? b. What is the after-tax interest rate that Jim is paying