Open AccessCorporate Motives In Bond Refunding And Calling: A Survey
Author(s) -
Joseph D.V. Vu
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v2i4.6562
Subject(s) - bond , survey data collection , business , process (computing) , economics , marketing , finance , computer science , statistics , mathematics , operating system
This paper provides the results of a survey of corporations which called nonconvertible bonds in the period from 1962 to 1978. The survey shows that interest saving is the most important motive for calls and refunding. Moreover, the evidence indicates that there are profitable opportunities to call bonds trading at a discount. The survey may help resolve conflicting results in evaluating the bond refunding process.