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i already attached the table As of July 2009. Google (ticker: GOOG) had no debt. Suppose the firm were to issue S96 billion in zero-coupon

i already attached the table

As of July 2009. Google (ticker: GOOG) had no debt. Suppose the firm were to issue S96 billion in zero-coupon senior debt, and another $16 billion in zero-coupon junior debt, both due in January 2011. Suppose Google had 320 million shares outstanding, trading at $422.27 per share, implying a market value of $135.1 billion. The risk-free rate over this horizon is 1.0%. Use the option data in the table to determine the rate Google would pay on the junior debt issue. (Assume perfect capital markets.) The rate Google would pay on the junior debt issue is % (Round to one decirrial place.) image text in transcribedimage text in transcribed

As of July 2009. Google (ticker: GOOG) had no debt. Suppose the firm were to issue S96 billion in zero-coupon senior debt, and another $16 billion in zero-coupon junior debt, both due in January 2011. Suppose Google had 320 million shares outstanding, trading at $422.27 per share, implying a market value of $135.1 billion. The risk-free rate over this horizon is 1.0%. Use the option data in the table to determine the rate Google would pay on the junior debt issue. (Assume perfect capital markets.) The rate Google would pay on the junior debt issue is % (Round to one decirrial place.) Data Table al (Click on the following icon in order to copy its contents into a spreadsheet.) GOOG 422.27 +7.87 Jul 13 2009 13:10 EST Vol 2177516 Calls Open Bid Ask an Int 11 Jan 150.0 (OZF AJ) 11 Jan 160.0 (OZF AL) 11 Jan 200.0 (OZF AA) 11 Jan 250.00 (OZF AU) 11 Jan 280.0 (OZF AX) 11 Jan 300.0 (OZF AT) 11 Jan 320.0 (OZF AD) 11 Jan 340.0 (OZF AI) 11 Jan 350.0 (OZF AK) 11 Jan 360.0 (OZF AM) 11 Jan 380.0 (OZF AZ) 11 Jan 400.0 (OZF AU) 11 Jan 420.0 (OZF AG) (11 Jan 450.0 (OZF AV) 273.00 284.50 228.90 186.50 162.80 148.20 133.90 120.50 114.10 107.90 95.80 85.10 74.60 61.80 276.90 267.520 231.20 188.80 165.00 150.10 135.90 122.60 116.10 110.00 98.00 87.00 76.90 63.30 100 B2 172 103 98 408 63 99 289 66 2577 66 379 HH Print Done

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