DuPont reports in a recent balance sheet $1,383 million of 6.00 percent notes payable due in 2018. The companys income tax rate is approximately 20 percent.

Compute the companys after tax cost of borrowing on this bond issue stated as a total dollar amount.

Compute the companys after-tax cost of borrowing on this bond issue stated as a percentage of the amount borrowed.

Describe briefly the advantage of raising funds by issuing bonds as opposed to stocks.