Bajo, Emanuele; Barbi, Massimiliano - In: Journal of Banking & Finance 36 (2012) 2, pp. 550-563
Since the seminal work of Ingersoll (1977b) the optimal time in which a firm should redeem its outstanding convertible bonds has received large attention by the financial literature. Several studies have put forward a number of possible costs and benefits for a firm if it interrupts the life of...