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.)Appendix

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GOOG Jul 13 2009 @ 13:10 ET Calls 422.27 +7.87 Vol 2177516 Bid Ask Open Int 2011 Jan 21 Call 150.00 273.60 276.90 100 2011 Jan 21 Call 160.00 264.50 267.20 82 2011 Jan 21 Call 200.00 228.90 231.20 172 2011 Jan 21 Call 250.00 186.50 188.80 103 2011 Jan 21 Call 280.00 162.80 165.00 98 2011 Jan 21 Call 300.00 148.20 150.10 408 2011 Jan 21 Call 320.00 133.90 135.90 63 2011 Jan 21 Call 340.00 120.50 122.60 99 2011 Jan 21 Call 350.00 114.10 116.10 269 2011 Jan 21 Call 360.00 107.90 110.00 66 2011 Jan 21 Call 380.00 95.80 98.00 88 2011 Jan 21 Call 400.00 85.10 87.00 2577 2011 Jan 21 Call 420.00 74.60 76.90 66 2011 Jan 21 Call 450.00 61.80 63.30 379