Commercial loan borrower's optimal borrowing and prepayment decisions under uncertainty

被引：4
|
作者：
Chiang, HuiChen [1 ]
机构：
[1] Ming Chuan Univ, Grad Sch Management, Taipei 105, Taiwan
来源：
APPLIED ECONOMICS | 2007年 / 39卷 / 7-9期
关键词：
D O I：
10.1080/00036840500461972
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We model a firm which faces continuing stochastic money needs and fluctuating interest rates. The borrower minimizes the expected present value of the sum of interest payments and prepayment penalty costs subject to a liquidity constraint. Since contingent opportunities are absent from the model, we find (i) the firm should not inventory cash, (ii) the firm should prepay the maximum amount possible if it prepays at all.
引用
收藏
页码：1013 / 1020
页数：8
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