That is, the option value is the greater (maximum) of either 1) the noncallable value less par or 2) zero.
This research also calculates noncallable par coupon rates (incb) to compare to the callable par rates.
TERM is the number of months to maturity for noncallable bonds and the number of months until first call for callable bonds.
This section discusses the results of the empirical tests of the response of callable and noncallable bonds to the call announcement for US Treasuries.
Fannie Mae may periodically engage in buybacks of outstanding noncallable
Benchmark Securities in 2005, except for on-the-run two-, three-, five- and ten-year maturity securities.
Nevertheless, the number of noncallable
junk bonds rose substantially in 1991.
Because we are considering a single (hence, seniormost) noncallable
corporate bond, the bondholders will get the lower of the face value (P) or the market value of the firm at maturity.
Given the identification of the time 0 marginal investor in noncallable
bonds, the analysis now turns to the valuation of callable bonds.
s (TriNet) recent offering of $150 million noncallable
senior unsecured notes.
The bonds will be secured by a first priority security interest in collateral consisting of noncallable
obligations issued or guaranteed by the U.
The offering will consist of up to $350 million in 10-year noncallable
notes and up to $400 million in 30-year noncallable
25 billion and comprises three tranches of senior notes: $400 million of floating rate (LIBOR plus 275 bps) senior notes due 2009, which are noncallable
for two years; $350 million of 6.