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Indexing a bond's call price: an analysis of make-whole call provisions

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  • Mann, Steven V.
  • Powers, Eric A.

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  • Mann, Steven V. & Powers, Eric A., 2003. "Indexing a bond's call price: an analysis of make-whole call provisions," Journal of Corporate Finance, Elsevier, vol. 9(5), pages 535-554, November.
    • Handle: RePEc:eee:corfin:v:9:y:2003:i:5:p:535-554
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    References listed on IDEAS

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    1. Robbins, Edward Henry & Schatzberg, John D, 1986. "Callable Bonds: A Risk-Reducing Signalling Mechanism," Journal of Finance, American Finance Association, vol. 41(4), pages 935-949, September.
    2. Roberts, Gordon S & Viscione, Jerry A, 1984. "The Impact of Seniority and Security Covenants on Bond Yields: A Note," Journal of Finance, American Finance Association, vol. 39(5), pages 1597-1602, December.
    3. Marr, M. Wayne & Ogden, Joseph P., 1989. "Market imperfections and the choices of maturity and call provisions in corporate debt," Journal of Business Research, Elsevier, vol. 19(1), pages 17-31, August.
    4. Kish, Richard J. & Livingston, Miles, 1992. "Determinants of the call option on corporate bonds," Journal of Banking & Finance, Elsevier, vol. 16(4), pages 687-703, August.
    5. Kahan, Marcel & Yermack, David, 1998. "Investment Opportunities and the Design of Debt Securities," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 14(1), pages 136-151, April.
    6. Richard J. Kish & Miles Livingston, 1993. "Estimating The Value Of Call Options On Corporate Bonds," Journal of Applied Corporate Finance, Morgan Stanley, vol. 6(3), pages 95-99, September.
    7. Narayanan, M. P. & Lim, Suk-Pil, 1989. "On the Call Provision in Corporate Zero-Coupon Bonds," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 24(1), pages 91-103, March.
    8. Fung, W K H & Rudd, Andrew, 1986. "Pricing New Corporate Bond Issues: An Analysis of Issue Cost and Seasoning Effects," Journal of Finance, American Finance Association, vol. 41(3), pages 633-643, July.
    9. Graham, John R. & Harvey, Campbell R., 2001. "The theory and practice of corporate finance: evidence from the field," Journal of Financial Economics, Elsevier, vol. 60(2-3), pages 187-243, May.
    10. Leland E. Crabbe & Jean Hewlege, 1994. "Alternative Tests of Agency Theories of Callable Corporate Bonds," Financial Management, Financial Management Association, vol. 23(4), Winter.
    11. Smith, Clifford Jr. & Warner, Jerold B., 1979. "On financial contracting : An analysis of bond covenants," Journal of Financial Economics, Elsevier, vol. 7(2), pages 117-161, June.
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    Cited by:

    1. Mann, Steven V. & Powers, Eric A., 2007. "Determinants of bond tender premiums and the percentage tendered," Journal of Banking & Finance, Elsevier, vol. 31(3), pages 547-566, March.
    2. Alderson, Michael J. & Lin, Fang & Stock, Duane R., 2017. "Does the choice between fixed price and make whole call provisions reflect differential agency costs?," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 442-460.
    3. Brown, Scott & Powers, Eric, 2020. "The life cycle of make-whole call provisions," Journal of Corporate Finance, Elsevier, vol. 65(C).
    4. Afik, Zvika & Jacoby, Gady & Stangeland, David & Wu, Zhenyu, 2019. "The make-whole and Canada-call provisions: A case of cross-country spillover of financial innovation," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 61(C), pages 120-127.
    5. Carsten Bienz & Antoine Faure-Grimaud & Zsuzsanna Fluck, 2011. "Defeasance of Control Rights," FMG Discussion Papers dp679, Financial Markets Group.
    6. Batten, Jonathan A. & Jacoby, Gady & Liao, Rose C., 2014. "Corporate yield spreads and real interest rates," International Review of Financial Analysis, Elsevier, vol. 34(C), pages 89-100.
    7. Korkeamaki, Timo P., 2005. "Effects of law on corporate financing practices--international evidence from convertible bond issues," Journal of Corporate Finance, Elsevier, vol. 11(5), pages 809-831, October.
    8. Nayar, Nandkumar (Nandu) & Stock, Duane, 2008. "Make-whole call provisions: A case of "much ado about nothing?"," Journal of Corporate Finance, Elsevier, vol. 14(4), pages 387-404, September.

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