Search engine for discovering works of Art, research articles, and books related to Art and Culture
Javascript must be enabled to continue!
After‐Tax Bond Yields When Tax and Coupon Payments Are Not Simultaneous
View through CrossRef
AbstractTypical after‐tax bond yield‐to‐maturity calculations do not accurately reflect the timing of tax payments for the cash basis tax payer. The best of the methods gives reasonable yield estimates when the first coupon payment date is around May 15. As payment dates vary from May 15, bond values are affected by tax deferrals relating solely to the non‐simultaneity of coupon interest and tax payments. These valuation effects, which are not measured by conventional bond models, can be significant, as demonstrated by model simulation and empirical tests which show that the bond market does price the coupon timing tax deferrals predicted by the model.
Title: After‐Tax Bond Yields When Tax and Coupon Payments Are Not Simultaneous
Description:
AbstractTypical after‐tax bond yield‐to‐maturity calculations do not accurately reflect the timing of tax payments for the cash basis tax payer.
The best of the methods gives reasonable yield estimates when the first coupon payment date is around May 15.
As payment dates vary from May 15, bond values are affected by tax deferrals relating solely to the non‐simultaneity of coupon interest and tax payments.
These valuation effects, which are not measured by conventional bond models, can be significant, as demonstrated by model simulation and empirical tests which show that the bond market does price the coupon timing tax deferrals predicted by the model.
Related Results
The impact of attitude towards an e-tax system on tax compliance of Vietnamese enterprises: Adoption of an e-tax system as a mediator
The impact of attitude towards an e-tax system on tax compliance of Vietnamese enterprises: Adoption of an e-tax system as a mediator
PURPOSE: Tax compliance is a topic of concern for many scholars all over the world. Most of them point out factors affecting tax compliance, and one significant factor is the adopt...
FEATURES OF CORPORATE INCOME TAX IN KAZAKHSTAN
FEATURES OF CORPORATE INCOME TAX IN KAZAKHSTAN
The relevance of the article is that today one of the fundamentally important problems is to strengthen the financial system and ensure the entry of the national economy of Kazakhs...
TAX PLANNING IN THE ENTERPRISE MANAGEMENT SYSTEM
TAX PLANNING IN THE ENTERPRISE MANAGEMENT SYSTEM
The differences between the concepts of “tax planning”, “tax minimization” and “tax optimization” are investigated and it is established that tax minimization is the maximum reduct...
PAYMENTS TO ENTERPRISE EMPLOYEES: ACCOUNTING, TAXATION AND CONTROL
PAYMENTS TO ENTERPRISE EMPLOYEES: ACCOUNTING, TAXATION AND CONTROL
The purpose of the article is to substantiate and disclose the features of accounting, taxation and control of payments to employees of the enterprise, taking into account legislat...
The Influence of Tax Knowledge, Tax Service Quality, Tax Audit, and Use of Tax Sanctions on Tax Evasion: The Case Study of KPP Pratama Seberang Ulu 1 Palembang
The Influence of Tax Knowledge, Tax Service Quality, Tax Audit, and Use of Tax Sanctions on Tax Evasion: The Case Study of KPP Pratama Seberang Ulu 1 Palembang
Tax evasion and tax avoidance and is part of tax planning which aims to reduce the amount of tax payments. As an illegal act, it is clear that tax evasion violates the law so that...
An Analysis of the Severance Tax
An Analysis of the Severance Tax
The purposes of this thesis are to examine the strengths and weaknesses of the severance tax, to study the methods of administering the severance tax and to examine the severance t...
Gross and net tax shield valuation
Gross and net tax shield valuation
Purpose
The purpose of this paper is to show that distinguishing between gross and net tax shields arising from interest deductions is important to firm valuation. The distinction ...
Tax non-compliance among SMCs in Malaysia: tax audit evidence
Tax non-compliance among SMCs in Malaysia: tax audit evidence
Purpose– The pervasiveness of tax non-compliance remains a serious concern to most tax authorities around the world. The negative impact of tax non-compliance on the economy and th...