2The goal of this problem is to estimate the 10-year cost of debt for Macy's, using bond pri ces, bond ratings and interest coverage ratios Bond Coupon Mty Callable Moody's S&P Fitch Price Symbol Name MACYS M3930949 RETAIL 2.88 02/15/2023 No Baa3 BBB BBB 95.42 HLDGS INC ) Suppose today's date is 02/27/2013 The coupons are paid semi-annually (hence $2.88 is the annual coupon payment) Therefore, the coupons will be paid on 08/15/2013, 02/15/2014, 08/15/2014 02/15/2015,... and so on until the bond matures on 02/15/2023. The previous coupon was paid on 02/15/2013, which is 12 days ago from today. And the next coupon payment on 08/15/2013 is 170 days from today, which is 182 days from 02/15/2013 Moreover, notice here the quoted price $95.42 is the clean price of the bond (the same as in our class example). You are also given that a BBB bond has a default probability of 5.09% and a recovery rate of 49.42%. Calculate the 10-year cost of debt for Macy's based on all this information. Hmtfollow the same steps as we did in the class for our American Express bond example. You need to get the dirty price of the bond and estimate the expected final payment at maturity. Then you need to properly discount the cash flows of the bond back to today (02/27/2013), ie. NO "lazy calculation"please. Lastly, You can solve for the cost of debt by usng Excel or any other equivalent means.)