### What annual rate of return would she have earned

Assignment Help Finance Basics
##### Reference no: EM13911697

"Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, TMCC promised to repay the owner of one of these securities \$100,000 on March 28, 2038, but investors would receive nothing until then. Investors paid TMCC \$24,099 on March 28, 2008, for the promise of a \$100,000 payment 30 years later.

Such a security, for which you pay some amount today in exchange for a promised lump sum to be received at a future date, is about the simplest possible type. Is giving up \$24,099 in exchange for \$100,000 in 30 years a good deal? On the plus side, you get back about \$4 for every \$1 you put up. That probably sounds good; but on the down side, you will have to wait 30 years to get it."

Question:

Based on the \$24,099 price, what rate was TMCC paying to borrow money?

Suppose that, on March 28, 2020, this security's price is \$38,260. If an investor had purchased it for \$24,099 at the offering and sold it on this day, what annual rate of return would she have earned?

If an investor had purchased the security at market on March 28, 2020, and held it until it matured, what annual rate of return would she have earned?

#### What is the eoq for this item

A local car manufacturing plant has a \$75 per-unit per-year carrying cost on a certain item in inventory. This item is used at a rate of 50,000 per year. Ordering costs are

#### Analyze the types of securities and financial markets

Analyze the types of securities and financial markets and propose a new type of market that would be better than anything in existence today. Please be as creative as you li

#### What is the estimation of a put choice

What is the estimation of a put choice if the time to lapse is 3 months, hazard free rate is 8%, activity cost is Rs.60 and the stock cost is Rs.70?Insight : Use put-call equa

#### What is the estimation of the call alternative

What is the estimation of the call alternative if the danger free rate is 10 percent? Utilize the alternative proportionate strategy,What is the estimation of the call alterna

#### What is the normal return and danger of the portfolio

What is the normal return and danger (standard deviation) of the portfolio.What is the extension for gratefulness in business sector cost of the three stocks-would they say th

#### Set up a trial equalization

The accompanying balances were removed from the record of Rahul on 31st March, 2003. You are asked for to set up a trial equalization as on that date in the best possible stru

#### Set up a bank compromise explanation

At the point when parity according to pass book (positive) is given,Mrs.Jame's pass book,you are obliged to set up a Bank compromise explanation and discover the equalization

#### Gure out the parity according to pass book

At the point when offset according to money book is great.from the accompanying subtle elements put forth out a bank compromise explanation for M/s.Elavarasan & Company as on