The assumption that bondholders follow either a buy-and-hold or a continuous realization trading policy, rather than the optimal trading policy,is at variance with reality and, as we demonstrate, may seriously bias the estimation of the yield curve and the implied tax bracket of the marginal...

Key Features:The unique format of this volume is the inclusion of reprinted articles followed by critical essays commissioned especially for the volumeProvides a comprehensive review of important topics, and updates and extends the contribution of the reprinted articles while offering directions...