Landskroner, Yoram; Raviv, Alon - In: Journal of Futures Markets 28 (2008) 7, pp. 634-655
This paper derives a valuation model of inflation‐indexed convertible bonds that incorporates the firm's stock price, inflation indexing and the firm's credit risk. The pricing of inflation‐indexed convertible bonds traded on the Tel‐Aviv Stock Exchange (TASE) was empirically tested by...