Corporate bond investors are compensated for liquidity and counter-party risk in the yield received in excess of the credit premium and risk-free rate. This paper shows that the liquidity premium as a hedge against uncertain future states is determined by the ratio of excess coupon payments...

The often-badmouthed Greek bailouts have allowed the Hellenic nation to enjoy unprecedentedly sensationally generous funding terms. In particular, Eurozone loans have become, through a glorious combination of very low nominal interest rates and large cash transfers, the equivalent of a negative...

The purpose of this paper is to introduce the R package BondValuation for analysis of large datasets of fixed coupon bonds. The conceptual heterogeneity of fixed coupon bonds traded in the global markets imposes a high degree of complexity on their comparative analysis. Contrary to baseline...

We examine the role of the coupon choice in bond contracts as a signaling mechanism in the presence of information asymmetry between borrowers and lenders about the credit quality of the borrower. Prior literature focuses on the use of maturity as a signaling mechanism. We conjecture that the...