Examining the Determinants of State Borrowing Costs: Controlling for Different Terms to Maturity
Cynthia Sneed
(Department of Accounting and Finance, University of Nebraska at Kearney, Kearney, NE 68849. USA)
John Sneed
(Department of Accounting and Finance, University of Nebraska at Kearney, Kearney, NE 68849. USA)
Kathleen J. Smith
(Department of Accounting and Finance, University of Nebraska at Kearney, Kearney, NE 68849. USA)
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Abstract
Prior studies have developed models to identify factors that determine the borrowing costs for state governments. When state governments borrow money, they usually issue serial bonds. With a serial bond issue, a portion of the principal borrowed is repaid each year, along with the interest payments, over the life of the bond issue. Also, a separate yield‐to‐maturity (YTM) is assigned for the yearly maturities under the serial bond issue.
Citation
Sneed, C., Sneed, J. and Smith, K.J. (1997), "Examining the Determinants of State Borrowing Costs: Controlling for Different Terms to Maturity", Management Research News, Vol. 20 No. 10, pp. 1-8. https://doi.org/10.1108/eb028577
Publisher
:MCB UP Ltd
Copyright © 1997, MCB UP Limited