Underpricing of newly issued bonds: evidence from the Swiss capital market
Article Abstract:
The pricing of newly issued bonds on the Swiss capital market is investigated over the years 1980-1982. The results reveal a slight underpricing of new bonds at the issue date that is roughly equal to the difference in transactions costs between the markets for new and seasoned bonds. Underpricing is no longer observed when the new bonds start to be traded on the stock exchange, that is, after about two days. Tests of several hypotheses show that unexpected changes in interest rates over the offering period explain part of the underpricing. (Reprinted by permission of the publisher.)
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1988
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An International Study of Tax Effects on Government Bonds
Article Abstract:
The impact of taxes on the pricing of four countries non-callable, default-free coupon bonds is examined in an econometric model. For the United States and the United Kingdom, tax introduction decreases the variation. A smaller decrease occurs in Japan and Germany. Pricing of the coupon bonds is consistent with the tax status of major bondholders.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1984
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A tax-linked clientele for index-linked bonds: a comment
Article Abstract:
This comment describes the U.S. federal tax treatment of corporate bonds that are indexed for inflation and argues that these bonds do not have a tax-induced clientele in the United States. (Reprinted by permission of the publisher.)
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1991
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