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I had both Tercel and a Paseo, and at one time was VERY into the Tercel Online forum. I can tell you from doing many engine and tranny swaps in both cars that the 5-spd from my '92 Paseo was good enough for 130mph top speed with only 150hp (Maybe less). The gearing also was able to provide 55mpg or better when I wanted it.
It would be a VERY easy swap. Direct bold on replacement for the 4spd from the Tercel.
Just my $.02
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