Duration and convexity of zero-coupon convertible bonds

Article Abstract:

A study derived and developed a comprehensive duration and convexity model for convertible bonds. The model considered the default risk and the conversion option typical in such securities including the subordination impact of the convertible debt. It was revealed that the zero-coupon bond was brief in duration compared to the duration of a similar non-convertible bond. Moreover, the convexity of a convertible was also markedly different from that of a straight bond.

Corporate Bonds, Models, Convertible bonds

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Market power, wage rate, and systematic risk: a homogeneous production function approach

Article Abstract:

An analysis of the impact of a firm's wage rate on another firm's systematic risk is presented. The analysis applies duopoly models and homogeneous production functions. It is shown that systematic risk descreases with a duopoly's higher monopoly power. In addition,although the observed relation between increased wage rates and increased systematic risk holds, internal effets on the initial firm increase may vary depending on production function relations.

Research, Economic aspects, Compensation and benefits, Risk (Economics), Business enterprises, Wages, Wages and salaries, Production functions (Economics)

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