One can value a bond by discounting each of its cash flows at its own zero-coupon (" spot')
rate. This procedure is equivalent to discounting the cash flows at a series of one-…

A NUMBER OF INVESTIGATORS have considered reasons why various options are
included when bonds are issued. Most attention centers on the almost invariable inclusion in …

Long-term corporate bonds have traditionally been issued with a call option, whereby the
issuing company reserves the right to call the bond, that is, to redeem or buy back the bond …

Refunding efficiency, a measure of the optimality of a refunding decision, is widely used in
the call exercise decision for agency, corporate and municipal bonds. The original definition …

Yield curves are fundamental to the understanding of bond values. In the taxable market,
the standard benchmark is the Treasury curve, which indicates the levels at which the US …

We investigate the interaction of interest rates and corporate income taxes upon the cost of
original issue discount bonds. This interaction provides an explanation for the virtual non-…

This paper attempts to establish that refunding of discounted debt under typical tax treatment
of the gain income is not profitable; that under certain favorable tax treatment of the gain …

This paper covers a variety of problems with corporate bond sinking fund provisions that may
arise in connection with bonds whose coupon rate is below the prevailing level of interest …

Despite the enormous volume of refinancing activity in conventional residential mortgages,
reaching record levels during recent years of historically low interest rates, the solution to the …

Open market purchase of bonds to fulfill sinking fund obligations is a valuable option to the
issuer. If interest rates rise, the bonds can normally be obtained at a discount rather than …