Internet Appendix to 'Tax Distortions and Bond Issue Pricing'
18 Pages Posted: 28 Nov 2017
Date Written: November 21, 2017
Original paper is available at: https://ssrn.com/abstract=2735812
This Internet Appendix contains supplemental material that was not included in Landoni (2018). Section 1 describes in detail the bond pricing model with taxes used to derive the paper's main results, with the aim of allowing an interested reader to reproduce it. Section 1 also highlights similarities and differences vis-à-vis Constantinides and Ingersoll (1984), and provides additional analytical results. Section 2 briefly discusses the consequences of ignoring state taxes.
Keywords: Municipal, Bonds, Security design, Tax arbitrage, Coupon rate, Issue price
JEL Classification: G12, G32, G35, G38, H2
Suggested Citation: Suggested Citation