Suppose that when TMCC offered the security in 2008, the U.S. Treasury had offered an essentially identical security. That is, the U.S. Treasury promised to repay $100,000 per unit in 30 years from the offering date (no interim payment). Note that the U.S. Treasury securities (T-bill and treasury bonds) are considered riskless, guaranteed by the government, whereas TMCC securities are not.
Which of the following statements is correct? Choose only one.