Acharya, Viral V. (contributor); … - 2001 - [Elektronische Ressource]
simultaneously.
This paper examines the valuation and risk management of callable defaultable
bonds when both interest rates and firm … management. Section 5 concludes.
3
1 Related Literature
Much of the existing theory of defaultable debt treats interest rates as … management.
4.1 Duration
The duration of a bond tends to decline as call or default becomes imminent. This
observation, together …