money market account or (ii) purchase zero-coupon bonds and invest the remainder of his wealth in the money market account …. The indifference price of the zero-coupon bond is the price at which the investor could achieve the same expected utility … under both strategies. In an affine term structure setting, we show that the indifference price of the zero-coupon bond is …

-called catastrophe bonds (abbreviated as cat bonds) and the corporate bonds. In the first section, we start from a brief definition as …, the comparison with Corporate bonds, our benchmark, in terms of expected returns. In sections four and five, we will point …