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Optimal bond refunding strategies
Author(s) -
Lewellen Wilbur G.,
Rosenfeld Ahron
Publication year - 1987
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090080311
Subject(s) - bond , debt , set (abstract data type) , shareholder , economics , extension (predicate logic) , microeconomics , business , finance , computer science , corporate governance , programming language
An extension of the conceptual framework for assessing the desirability of a bond refunding operation is presented. The analysis indicates an expanded set of opportunities for enhancing shareholder wealth that may involve actions other than an immediate call of existing debt, even though the latter appears worthwhile. Conditions that specify the optimal timing of a call are derived.