Question: Use the option data from the table LOADING... to determine the rate Buffin would have paid if it had issued $119.21 billion in zero-coupon debt

Use the option data from the table LOADING... to determine the rate Buffin would have paid if it had issued $119.21 billion in zero-coupon debt due in January 2017. Suppose Buffin currently had 313.71 million shares outstanding, implying a market value of $127.32 billion. The current two-year risk-free rate is 4.50%. (Assume perfect capital markets.) The yield on the Buffin debt is ---------%. (Round to one decimal place.)

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