Call Protection in Convertible Bonds: How Much and Why?

Timo P. Korkeamaki and William T. Moore

Volume 3, Number 3, Third Quarter 2005

This article is drawn largely from “Convertible Bond Design and Capital Investment: The Role of Call Provisions,” published by the authors in the Journal of Finance, Volume 59, 2004, pp. 391-405. The authors are indebted to colleagues at the University of South Carolina for helpful comments and guidance, as well as Rick Green, Jeremy Stein, and Jeff Woolridge. We are grateful for comments from participants at a 2002 joint seminar of the Swedish School of Economics and Business and the Helsinki School of Economics. Many thanks to Ellen Roueche for her expert help in preparing and editing this manuscript.