Computing the annual rate of return

Assignment Help Operation Management
Reference no: EM131087198

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 security's 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?

Reference no: EM131087198

Questions Cloud

Necessary for each one to diagnose a particular problem : A random sample of 15 automobile mechanics certified to work on a certain type of car was selected, and the time (in minutes) necessary for each one to diagnose a particular problem was determined, resulting in the following data:
What is the height of the liquid : what is the height of the liquid?
How would you address the accounting effects : How would you address the accounting effects of this approach with upper management? Also, in your view, what would be the next steps for improvement that the company would need to undertake in order to correct the problem?
Oxygen and carbon dioxide partial pressure : The accompanying data is a subset of the data reported in the article "Synovial Fluid pH, Lactate, Oxygen and Carbon Dioxide Partial Pressure in Various Joint Diseases" (Arthritis and Rheumatism, 1971: 476-477).
Computing the annual rate of return : 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?
What pressure would you expect for 5 ft of water : What pressure would you expect for 5 ft of water?
What did kerner company show as total credits : In a period of increasing prices, which inventory cost flow assumption will result in the lowest amount of income tax expense? What did Kerner Company show as total credits?
Find the approximate water flow in the pipe : Find the approximate water flow in the pipe.
Payback method of project evaluation : Define and explain the Payback method of project evaluation. Over 50% of chief financial officers surveyed indicate that their firm uses this method of project evaluation. Discuss the advantage and disadvantage of this method.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd