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 for each of these securities

.

a.

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

money?

b.

Suppose that, on March 28,

2019, the securitys price is $42,380. If an

investor had purchased it for $24,099 at the offering and solid 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, 2019,

and held

it until it matured, what annual rate of return would she have

earned?