The corporate borrower may, from time to time, choose to purchase its outstanding bonds in the open market. Under SEC regulations, the borrower may not resell these bonds, but must retire them in a manner governed by the relevant indenture.

Primes and scores split the cash flows of a share of stock into dividend and capital gain components, respectively. An analysis of the transaction prices reveals that the sum of prime and score prices exceeds the price of the underlying stock. This paper develops a tax-clientele explanation of...

An often-cited rule in corporate finance is that a firm should call a bond as soon as the bond's market price equals its call price. But, in fact, many callable bonds sell for more than their call prices. One explanation is that the implicit assumption that calls are executed so as to leave...