Financial analysts need accurate estimates of debt, equity, leverage, and EPS. The method proposed here, based on the probability of conversion, yields new estimates of the debt and equity in a convertible bond issue. When this method is used, the value of the equity component in a hypothetical...

This paper examines the behaviour of the ‘VXO', previously called the ‘VIX', and ‘VXN' measures of the volatility implied by stock index options. From the mid-1990s to the end of 2002, the volatility measures seem to reflect both sentiment associated with market declines (‘fear') and...

The discounts of closed-end country funds, from their net asset value, vary substantially from week to week. Statistical tests in this paper indicate that these discounts are mean reverting and therefore the discount has a predictable component. We investigate whether additional returns can be...