Toyota Motor Credit Corporation, a subsidiary of Toyota Motor, offered securities for sale on March $28,2008.$ Under the terms of the offering, Toyota Motor Credit promised to repay the owner of one these securities its face value, $$100,000,$ on March $28,2038.$ The bonds were priced at $$24,099$ and are to pay nothing until the March $2038$ maturity when they are to be redeemed for $$100,000.$ Thus, Toyota Motor Credit borrowed $$24,099$ for each bond and promised to pay back $$100,000$ thirty years later.

Action Items

By the due date indicated, create an initial post that answers the following:

Why do you think Toyota Motor Credit Corporation would be willing to accept such a small amount in $2008($$$24,099)$ in exchange for a promise to repay an amount almost four times larger $($$$100,000)$ in the future?

Would you be willing to pay $$24,099$ today in exchange for $$100,000$ thirty years from now? Justify your answers.