Data debt costs may be obtained from: https://fred.stlouisfed.org/series/HQMCB30YR

a (25 Points) 3. As a measure (estimate) of FDX's cost of new issued debt, FDX Corp. has Bond issue outstanding in the market that was issued on October 17, 2018 of $850,000,000 par value with a coupon rate of 4.950% (paid semiannually) that will mature on October 17, 2048 (assume today the bond has 27.0 years to maturity or 54 semiannual periods). The current price of the bond is 124.992 percent of par value (assuming a par value of $1000, the bond price is $1,249.92), what is the annual yield (YTM) on this bond (be sure you convert the YTM from semiannual to annual; also, you may want to use Excel). Use this annual YTM on the outstanding bond issue to estimate FDX's cost of new, 30-year maturity bonds. After estimating the cost of new FDX debt, calculate FDX's after tax cost of the new debt assuming a 26 percent income tax rate? Remember: After-tax cost = before-tax cost (l-tax rate). Data debt costs may be obtained from:| = Use Excel Spreadsheet to calculate the YTM: SemiAnnual Yield= Annual YTM= After-tax cost debt =