On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity value, 3% coupon bonds when the market rate was 2% for a cash price of $4,994 million. Interest was payable semi-annually on Dec. 31 and June 30. ABC also issued $3,527 million face value, 20-year, zero coupon bonds on July 1, 2017, that matured on June 30, 2037, for a cash price of $2,619 million. The effective market interest rate at issuance was 1.5%. ABC repurchased $1,143 million face value coupon bonds on June 30, 2020 for $1,220 million cash (after interest was paid) and $582 million in face value of the zero-coupon bonds on June 30, 2021 for a purchase price of $432 million cash.

1. What amount of interest expense for the bonds did ABC report on its calendar year income statement in 2019 for each bond separately and in total (be careful as both bonds were issued in the middle of the year)?
2. Interest expense is deductible on the corporate tax return. Assuming a corporate tax rate of 19% in 2019, how much did ABC save in taxes by deducting the interest expense? What was the after-tax interest cost in 2019?

Rounding: Round to nearestmillionwith no decimals.