The asset value of government has traditionally been seen as the accounting value of public assets. We develop a detailed financial economics view on sovereign asset values using market measures to arrive at implied sovereign asset values. We establish definition and dependencies within the...

This paper proposes a new Monte Carlo technique for pricing options on forward bonds, by diffusing the bond-related Yield To Maturity (YTM). The framework stands for both sovereign and corporate bonds. We price both in stochastic and local default intensity (Hazard Rate Function). We actually...