(10 Points) 3. As a measure of FDX's current cost of new issue debt, FDX Corp issued new long-term, BBB (S&P) bonds 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. At the current price of 111.250 percent of par value, this equals an annual yield of 4.06%. You may use this bond issue to estimate FDX's cost of new issue, 30-year maturity debt. What is FDX's after tax cost of the new debt assuming a 26 percent income tax rate? Remember: After-tax cost = before-tax cost (1-tax rate). Data obtained from: After-tax cost debt = %