Use the option data from July 23, 2009 in the below table, to determine the rate Google would have paid if it had issued$108.75 billion in zero-coupon debt due in January 2011. Suppose Google currently had 310.72 million shares outstanding, implying a market value of $128.77 billion. Risk-free rate 1.2%. (Assume perfect capital markets).

GOOG 414.48 +7.87

Jul 13 2009@ 13:10 EST Vol 2177516

Calls Bid AskOpen Int

11 Jan 300.00 (OZF AT)148.20150.10 408

11 Jan 320.00 (OZF AD)133.90 135.90 63

11 Jan 340.00 (OZF AI)120.50 122.60 99

11 Jan 350.00 (OZF AK) 114.10 116.10 269

11 Jan 360.00 (OZF AM) 107.90110.00 66

11 Jan 380.00 (OZF AZ) 95.8098.00 88

11 Jan 400.00 (OZF AU) 85.10 87.00 2577