Daves, Phillip; Ehrhardt, Michael - In: Applied Financial Economics 21 (2011) 10, pp. 695-705
For an individual or company that is subject to taxes, we develop a method that uses laddered Separate Trading of Registered Interest and Principal (STRIP) bonds to determine the value (and composition) of a portfolio that replicates a risk-free after-tax cash flow that will occur on a single...