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Use the option data from July 2 3 , 2 0 0 9 in the table, , to determine the rate Google would have paid
Use the option data from July in the table, to determine the rate Google would have paid if it had issued $ billion in zerocoupon debt due in January Suppose Google
currently had million shares outstanding, implying a market value of $ billion. Riskfree rate is Assume perfect capital markets.
The yield on the Google debt is
Round to one decimal place. Data table
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