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 … value are stochastic and when the issuer follows
optimal call and default rules. To our knowledge, this is the first model … management. Section 5 concludes.
3
1 Related Literature
Much of the existing theory of defaultable debt treats interest rates as …