Tax Advantage of Corporate Bonds Consider the following scenario: ABC company pays federal income taxes at a rate of 35% on taxable income. Write a 200- to 350-word paper in which you complete the following: Briefly explain the income tax advantage of raising capital by issuing bonds rather than selling capital stock . Compute the company's annual after-tax cost of borrowing on an 8%$5 million bond issue. . Express this after-tax cost as a percentage of the borrowed $5 milion Include your calculations