10. Length of investment [LO 5.2] The TMCC security is bought and sold on the Australian Securities Exchange. If you looked at the price today, do you think the price would exceed the $24 099 original price?

Why? If you looked in the year 2030, do you think the price would be higher or lower than today’s price? Why? On 28 March 2008, Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor, offered some securities for sale to the public. Under the terms of the deal, TMCC promised to repay the owner of one of these securities $100 000 on 28 March 2038, but investors would receive nothing until then. Investors paid TMCC

$24 099 for each of these securities; so they gave up $24 099 on 28 March 2008, for the promise of a $100 000 payment 30 years later.