Evaluating the Decision to Issue Discount Bonds: Term Structure and Tax Effects
discount bonds;bonds;interest rate;financing methods;corporate bonds;detachable warrants;variable coupon rates
Financial Management Association International
Copyright Financial Management Association Winter 1983
There is considerable evidence that during periods of high interest rates participants in the financial markets rely more heavily on innovative financing methods. In an attempt to deal with the high interest rates of recent years, corporate borrowers have devised a series of special characteristics for corporate bond issues including put options, detachable warrants, and variable coupon rates.