Use the option data from July 13, 2009, in the following table to determine the rate Google would have paid if it had issued $128 billion in zero-coupon debt due in January 2011. Suppose Google currently had 320 million shares outstanding, implying a market value of $135.1 billion.

(Assume perfect capital markets.)

Calls Jul 13 2009 @ 13:10 ET Vol 2177516 GOOG 422.27 17.87 Bid Ask Open Int 11 Jan 150.0 (OZF AJ) 273.60 276.90 100 11 Jan 160.0 (OZF AL) 264.50 267.20 82 11 Jan 200.0 (OZF AA) 228.90 231.20 172 11 Jan 250.0 (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 66 379 76.90 63.30 74.60 61.80 11 Jan 420.0 (OUP AG)

11 Jan 450.0 (OUP AV)