1. How much cash would Deere have to pay to repurchase the 7.125% notes at the quoted market price of 135.13. (Assume no interest is owed when Deere repurchases the notes.) (Round your answer to two decimal places.) __________________

see notes below

Assume Deere & Company's 2012 10-K reports the following footnote relating to long-term debt. Deere's borrowings include $350 million, 7.125% notes, due in 2031 (boldedbelow). Long-term borrowings at October 31 consisted of the following in millions of dollars:

7.85% debentures due 2015	$ 306	$ 306
6.95% notes due 2019: ($700 principal) Swapped to variable interest rates of 6.1%-2012, 6.4%-2011	743	734
8.95% debentures due 2019	56	56
8-1/2% debentures due 2022	105	105
6.55% debentures due 2028	200	200
8.10% debentures due 2030	200	200
7.125% notes due 2031	350	350
Other notes	13	18
Total	$ 1,973	$ 1,969

A recent price quote (from Yahoo! Finance Bond Center) on Deere's 7.125% notes follows.

Corp	Deere & CO	135.13	7.125	3-Mar-2031	4.588	5.273	A	No

This price quote indicates that Deere's 7.125% notes have a market price of 135.13 (135.13% of face value), resulting in a yield to maturity of 4.588%.