Homework: Week 5 Homework (Ch 17, 20) O Question 22 > Score: 0 of 1 point Save As of July 2009, Google (ticker: GOOG) had no debt. Suppose the firm were to issue $96 billion in zero-coupon senior debt, and another $32 billion in zero-coupon junior debt, both due in January 2011. Suppose Google had 320 million shares outstanding, rading at $422.27 per share, implying a market value of $135.1 billion. The risk-free rate over this horizon is 1.0%. Use the option data in the table, to determine the rate Google would pay on the junior debt issue. (Assume perfect capital markets.) The rate Google would pay on the junior debt issue is %. (Round to one decimal place.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) GOOG Jul 13 2009 @ 13:10 EST 422.27 +7.87 Vol 2177516 Open Ask Int Calls Bid 11 Jan 150.0 (OZF AJ) 11 Jan 160.0 (OZF AL) 11 Jan 200.0 (OZF AA) 11 Jan 250.00 (OZF AU) 11 Jan 280.0 (OZF AX) 11 Jan 300.0 (OZE AT) 11 Jan 320.0 (OZF AD) 11 Jan 340.0 (OZF AI) 11 Jan 350.0 (OZE AK) 11 Jan 360.0 (OZE AM) 11 Jan 380.0 (OZF AZ) 11 Jan 400.0 (OZE AU) 11 Jan 420.0 (OZE AG) 11 Jan 450.0 (OZF AV) 273.60 264.50 228.90 186.50 162.80 148.20 133.90 120.50 114.10 107.90 95.80 85.10 74.60 61.80 276.90 267.520 231.20 188.80 165.00 150.10 135.90 122.60 116.10 110.00 98.00 87.00 76.90 63.30 100 82 172 103 98 408 63 99 269 66 88 2577 66 379 Enter your answer in the answer box and then click Check Answer. Help Me Solve This View an Example Get More Help ar All Check Answer Print Done