Transcribed image text: Befors-tax cost of debt and after-tax cost of debt David Abbot buying a new house, and he is taking out a 30-year mortgage. David wil borrow $194.000 from a bank, and to repay the loan he will make 360 monty payments (principal and interest) of $1,079.22 per month over the next 30 year. David can deduet 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 star-tax interest rate that David is paying? . The before tax interest rate (per your) on Davidson is the Hound to two doma poes) . The after tax norost ruto that David is paying Round a two decimal place)