In May 1988, Walt Disney Productions sold to Japanese investors a 20-year stream of projected yen royalties from Tokyo Disneyland. The present value of that stream of royalties, discounted at 6 percent (the return required by the Japanese investors), was

 In May 1988, Walt Disney Productions sold to Japanese investors a 20-year stream of projected yen royalties  from Tokyo Disneyland. The present value of that stream of royalties, discounted at 6 percent (the return  required by the Japanese investors), was ¥93 billion. Disney took the yen proceeds from the sale, converted  them to dollars, and invested the dollars in bonds yielding 10 percent. According to Disney's chief financial  officer, Gary Wilson, "In effect, we got money at a 6 percent discount rate, reinvested it at 10 percent, and  hedged our royalty stream against yen fluctuations--all in one transaction."