Use the option data from July 23, 2009 in the table, LOADING , to determine the rate Google would have paid if it had issued $128 00 billion in zero coupon debt due in January 2011 Suppose Google currently had 320 00 million shares outstanding, implying a market value of $135 13 billion Risk free rate is 1 2 (Assume perfect capital markets ) GOOG 422 27 7 87 Jul 13 2009 13 10 EST Vol 2177516 Calls Bid Ask Open Int 11 Jan 150 0 (OZF AJ) 273 60 276 90 100 11 Jan 160 0 (OZF AL) 264 50 267 520 82 11 Jan 200 0 (OZF AA) 228 90 231 20 172 11 Jan 250 00 (OZF AU) 186 50 188 80 103 11 Jan 280 0 (OZF AX) 162 80 165 00 98 11 Jan 300 0 (OZF AT) 148 20 150 10 408 11 Jan 320 0 (OZF AD) 133 90 135 90 63 11 Jan 340 0 (OZF AI) 120 50 122 60 99 11 Jan 350 0 (OZF AK) 114 10 116 10 269 11 Jan 360 0 (OZF AM) 107 90 110 00 66 11 Jan 380 0 (OZF AZ) 95 80 98 00 88 11 Jan 400 0 (OZF AU) 85 10 87 00 2577 11 Jan 420 0 (OZF AG) 74 60 76 90 66 11 Jan 450 0 (OZF AV) 61 80 63 30 379 The yield on the Google debt is (Round to one decimal place )

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Question: Use the option data from July 23, 2009 in the table, LOADING..., to determine the rate Google would have paid if it had issued $128.00

Use the option data from July 23, 2009 in the table, LOADING..., to determine the rate Google would have paid if it had issued $128.00 billion in zero-coupon debt due in January 2011. Suppose Google currently had 320.00 million shares outstanding, implying a market value of $135.13 billion. Risk-free rate is 1.2%. (Assume perfect capital markets.)

GOOG		422.27 +7.87
Jul 13 2009 @ 13:10 EST		Vol 2177516
Calls	Bid	Ask	Open Int

11 Jan 150.0 (OZF AJ)	273.60	276.90	100
11 Jan 160.0 (OZF AL)	264.50	267.520	82
11 Jan 200.0 (OZF AA)	228.90	231.20	172
11 Jan 250.00 (OZF AU)	186.50	188.80	103
11 Jan 280.0 (OZF AX)	162.80	165.00	98
11 Jan 300.0 (OZF AT)	148.20	150.10	408
11 Jan 320.0 (OZF AD)	133.90	135.90	63
11 Jan 340.0 (OZF AI)	120.50	122.60	99
11 Jan 350.0 (OZF AK)	114.10	116.10	269
11 Jan 360.0 (OZF AM)	107.90	110.00	66
11 Jan 380.0 (OZF AZ)	95.80	98.00	88
11 Jan 400.0 (OZF AU)	85.10	87.00	2577
11 Jan 420.0 (OZF AG)	74.60	76.90	66
11 Jan 450.0 (OZF AV)	61.80	63.30	379

The yield on the Google debt is ______(Round to one decimal place.)

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