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Score: 0 of 1 pt 3 of 10 (3 complete) HW Score: 296, 0.2 of 10 pts 3 P9-3 (similar to Question Help | * 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 $200,000 from a bank, and payments on his a. What is the before-tax interest rate (per year) on Davids loan? b. What is the after-tax interest rate that David is paying? to repay the loan he will make 3 60 monthly payments (principal and interest) of $1,290 03 per month over the next 30 years David can deduct interest from his taxable income, and based on hs income, Davd s in the 30% tax bracket a. The before tax interest rate (per year) on Davids loan is 96 (Round to one deo mal place ) Inco 1 Pemaining Clear All
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