estimate the costs of debt under various risk-related scenarios, focusing on particular situations where the new regulation may … business risk. Another asymmetry arises due to a small-business exemption which can make new investment prohibitive when its … cap is being reached. The model also suggests that non-deductibility of interest increases credit risk and could, in the …

the floor (zero-collar). Later in the paper, credit risk is taken in consideration. The credit risk of interest-rate swaps … most important determinants of credit risk in a swap spread is the yield curve slope. …

Hedging strategies represent basic instrument used toward eliminating financial risk. Increasing volatility of … select hedging strategies. Five basic hedging strategies ? delta hedging, minimum variance, minimum value at risk, maximum … portfolios consisting of risk assets (share, bond, commodity price, and exchange rate) and hedged assets (financial derivative …