Select Page

Step 1. Place your order

Fill in the order form and provide all details of your assignment.

Step 2. Make Payment

Choose the payment system that suits you most.

Step 3. Receive your paper

Once your paper is ready, we will email it to you.

Why would tmcc be willing to accept such a small amount today ($24,099) in exchange for a promise to repay about four times that amount ($100,000) in the future?

by | Sep 24, 2022 | Finance

 

Place your order now for a similar assignment and have exceptional work written by our team of experts, At affordable rates

For This or a Similar Paper Click To Order Now

Discussion Question 1
Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor Corporation, 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 each security $100,000 on March 28, 2038, but investors would receive nothing until then. Investors paid TMCC $24,099 for each of these securities; so they paid $24,099 on March 28, 2008 for the promise of a $100,000 payment 30 years later.
Why would TMCC be willing to accept such a small amount today ($24,099) in exchange for a promise to repay about four times that amount ($100,000) in the future?
A feature of this particular deal is that TMCC has the right to buy back the securities on the anniversary date at a price established when the securities were issued. What impact does this feature have on the desirability of this security as an investment?
Discussion Question 2 – CLO 3, CLO 4
Review “Mini Case: The MBA Decision” in your textbook on page 200, or at the end of Chapter 6 in your textbook. Then, answer the following questions:
How does Ben’s age affect his decision to get an MBA?
What other, perhaps non-quantifiable, factors affect Ben’s decision to get an MBA?
Assuming all salaries are paid at the end of each year, what is the best option for Ben—from a strictly financial standpoint?
Ben believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement?
What initial salary would Ben need to receive to make him indifferent between attending Wilton University and staying in his current position?
Suppose, instead of being able to pay cash for his MBA, Ben must borrow the money. The current borrowing rate is 5.4%. How would this affect his decision?
One page for each question or DQ 1 uses 3/4 pages and DQ 2 uses 1and 1/4 page. Depend on yourself. At least one citation for each question. You can also use the textbook as a citation.

For This or a Similar Paper Click To Order Now

What makes us the best

Eliteacademicessays.com is a brilliant custom writing service. We specialize in supplying professional writing help for students the world over. As a professional custom writing service, we are eager to offer reliable writing assistance with all types of written assignments to students who seek our help. Thus, students who order papers with us will receive a well-formatted, informative and carefully-research custom paper. 

We`re Fast

Never miss a deadline in your toughest (or most annoying subjects). Get reliable answers 24/7.

 

We`re Helpful

Our tutors provide the answers, write the content, and show the work too if you want.

 

We`re Affordable

Questions can get answered for as low as $10.99, because money doesn’t grow on trees.

We`re Always There

Never miss a deadline in your toughest (or most annoying subjects). Get reliable answers 24/7.

 

We`re Helpful

Our tutors provide the answers, write the content, and show the work too if you want.

 

We`re Affordable

Questions can get answered for as low as $10.99, because money doesn’t grow on trees.