Pricing Floating-Rate Debt and Related Interest Rate Options /

Most developing country debt is denominated in U.S. dollars and has a floating interest rate. The pricing of floating rate debt and related interest rate options are examined in this paper. Formulas for pricing ceilings and floors on floating rate debt are derived for several different models of int...

תיאור מלא

מידע ביבליוגרפי
מחבר ראשי: Scott, Louis
פורמט: כתב-עת
שפה:English
יצא לאור: Washington, D.C. : International Monetary Fund, 1990.
סדרה:IMF Working Papers; Working Paper ; No. 1990/007
גישה מקוונת:Full text available on IMF
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245 1 0 |a Pricing Floating-Rate Debt and Related Interest Rate Options /  |c Louis Scott. 
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300 |a 1 online resource (22 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a Most developing country debt is denominated in U.S. dollars and has a floating interest rate. The pricing of floating rate debt and related interest rate options are examined in this paper. Formulas for pricing ceilings and floors on floating rate debt are derived for several different models of interest rate variability. A framework for pricing risky debt and loan guarantees is presented, and the implications of the debtor country's default option are analyzed. The elimination of large principal repayments, by collateralizing the principal, serves to reduce the debtor country's incentive to use its default option. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1990/007 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1990/007/001.1990.issue-007-en.xml  |z IMF e-Library