Bjarne Astrup Jensen
Bjarne Astrup Jensen: Department of Finance, Copenhagen Business School, Postal: Department of Finance, Copenhagen Business School, Solbjerg Plads 3, A5, DK-2000 Frederiksberg, Denmark
Abstract: The return on a bond investment comes from three sources: Interest payments, real- ized capital gains and accrued capital gains. We provide an exact description on how the capital gains can be measured under a variety of accounting rules for measuring accruals and study the theoretical properties of such rules, their taxation consequences and the relation between the yield before tax and the yield after tax. The vehicle of our exposition is Makeham's formula, an actuarial formula for the present value of a payment stream largely neglected in the nance literature.
24 pages, October 15, 1999
Full text files
Questions (including download problems) about the papers in this series should be directed to Lars Nondal ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2018-01-23 23:31:05.