TAXES AND THE REFUNDING OF DISCOUNT BONDS
Abstract
This paper examines the effect of the Bankruptcy Tax Act of 1980 on the decision to refund corporate bonds selling at a discount. Historically, the refunding of discount debt has appeared to be profitable on a discounted cash flow basis. This study demonstrates, however, that the tax effects of the Bankruptcy Tax Act of 1980 have eliminated effectively any potential gains from refunding discounted debt. © The Southern Finance Association and the Southwestern Finance Association
Publication Title
Journal of Financial Research
Recommended Citation
Dyl, E., & Spahr, R. (1983). TAXES AND THE REFUNDING OF DISCOUNT BONDS. Journal of Financial Research, 6 (4), 265-273. https://doi.org/10.1111/j.1475-6803.1983.tb00337.x
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