Referring to the TMCC security we discussed at the very beginning of the chapter:
a. Based on the $24,099 price, what rate was TMCC paying to borrow money?
b. Suppose that, on March 28, 2016, this security’s price is $39,583. 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?
c. If an investor had purchased the security at market on March 28, 2016, and held it until it matured, what annual rate of return would she have earned?