This paper examines the driving factors of New Zealand bond yields over the 1988-1997 period. The results indicate that: - the general analytical framework implied by the Uncovered Interest Parity (UIP) relation finds some support in the data.- in the long run, short term real bond yields are...

The extensive 1980's deregulation of New Zealand financial markets is exploited to provide a unique test of capital structure theory. Specifically, debt choices of New Zealand corporate firms during pre-reform (1982-1985) and post-reform (1986-1989) periods are analysed and compared. However,...