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Use the option data from the table to determine the rate Buffin would have paid if it had issued $101.80 billion in zero-coupon debt due
Use the option data from the table to determine the rate Buffin would have paid if it had issued $101.80 billion in zero-coupon debt due in January 2017. Suppose Buffin currently had 318.12 million shares outstanding, implying a market value of $129.11 billion. The current two-year risk-free rate is 4.50%. (Assume perfect capital markets.) BUFN Dec 05, 2014 (Closing) 405.85 -11.85 Vol 10311740 Open Int Calls 17 Jan 300.0 (BVC AT-E) 17 Jan 310.0 (BVC AB-E) 17 Jan 320.0 (BVC AD-E) 17 Jan 330.0 (BVC AF-E) 17 Jan 340.0 (BVC AH-E) 17 Jan 350.0 (BVC AJ-E) 17 Jan 360.0 (BVC AL-E) 17 Jan 370.0 (BVC AN-E) 17 Jan 380.0 (BVC AU-E) 17 Jan 390.0 (BVC AV-E) 17 Jan 400.0 (BVC AW-E) 17 Jan 410.0 (BVC AX-E) The yield on the Buffin debt is %. (Round to one decimal place.) Bid Ask 157.60 160.20 353 201 220 214 151.10 153.90 144.80 147.80 138.70 141.90 132.90 136.10 127.20 130.40 121.70 124.90 116.40 119.50 166 209 196 380 111.40 114.40 123 106.50 109.50 165 102.00 104.60 1131 97.30 100.00 214
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