When the majority of securities are issued, their subsequent value is determined by the
underlying asset's evolution, market pricing, or payment functions. However, certain …

This research investigates the impact of interest rate volatility upon corporate bond yield
spreads. We first consider the impact of interest rate volatility upon noncallable bond …

Although many different aspects of debt structures such as bond covenants and repayment
schedules are empirically found to significantly influence values of bonds and equity, many …

Recent developments in the US corporate bond market, as well as recent evidence on the
pricing of illiquidity in this market, prompt us to reexamine the pricing of new bonds. The …

This paper studies the timings of interactive call and conversion decisions made by bond
issuers and holders, respectively, due to the presence of different embedded options. We …

Abstract Almost all North American callable corporate bonds carry a make-whole call option.
We trace the evolution of the US make-whole callable bond to the Canada-call that predates …

We reconsider the role of asymmetric information in motivating the issuance of callable
bonds. The previous literature has emphasized a possibility that a call feature serves as a …

This dissertation is a collection of three essays in corporate finance and bond interest rate
volatility. Chapter 1 investigates the impact of TARP preferred stock on two different types of …

This study investigates the relationship between interest rate volatility and yield spreads on
both noncallable and callable bonds. We first consider noncallable bonds. If greater interest …

Various options are designed to be embedded in corporate bonds to meet various
requirements from investors and issuers. Analyzing how the exercise strategy of an …