The pricing of corporate debt and related issues

The purpose of this thesis is to study the pricing and credit risk of corporate debt using structural and reduced-form approaches. We discuss the theoretical aspects of three important topics in pricing risky debt: (i) the impact of stochastic interest rates, and hence the interaction between market risk and credit risk; (ii) the impact of diversifiable and non-diversifiable jump risks on pricing and default mechanisms, and (iii) a reduced-form model with a firm’s fundamental variables. To investigate the relationships between market risk and credit risk, we develop a flexible binomial framework for valuing credit-sensitive instruments by generalizing the valuation model of Geske [1977]. We price a defaultable coupon bond when interest rates and a firm’s asset value are stochastic. Our results confirm our belief that firms with low credit quality should have more market risk than firms with high credit quality. We discuss the implications of the results for capital adequacy. In addition to providing conceptual insights into the default behaviour, the flexibility of our method allows for efficient pricing of other credit-sensitive instruments. To improve the short-end properties of credit spreads, we model a firm’s asset value as a jump-diffusion process. We show several significant implications of the jump process for the term structure of credit spreads. We also discuss the effects of the disversifiability of jumps on corporate debt pricing. We prove that without considering systematic jump risk, theoretical models tend to underestimate credit spreads. Another contribution of this thesis is the incorporation of taxes into our model to show that taxes do have significant effects on levels of credit spread. Interestingly, the model implies that a decrease in the federal tax rate may precipitate an earlier default of low-grade bonds. Finally, we investigate a reduced-form model of corporate debt, by taking into account stochastic interest rates, a firm’s equity values, and hazard rates of default. Through a moving average of a log-transformation of equity prices, we introduce structural characteristics of the firm into the model. This is an innovation

The Promise of a Post-Genocide Constitution: Healing Rwandan Spirit Injuries

This Article hopes to extend Critical Race Theory\u27s social construction of race theory by emphasizing ethnicity as well as race. The Rwandans are undoubtedly within the so-called Black race. Historically, they have also been socially constructed as consisting of different races and ethnicities, even though many scholars and Rwandans do not see ethnic, much less racial, distinctions. Some of these Rwandans who did see such differences participated in the genocide

Cost of inpatient rehabilitation care in the Department of Veterans Affairs

Abstract—We investigated the determinants of inpatient rehabilitation costs in the Department of Veterans Affairs (VA) and examined the relationship between length of stay (LOS) and discharge costs using data from VA and community rehabilitation hospitals. We estimated regression models to identify patient characteristics associated with specialized inpatient rehabilitation costs. VA data included 3,535 patients discharged from 63 facilities in fiscal year 2001. We compared VA costs to community rehabilitation hospitals using a sample from the Uniform Data System for Medical Rehabilitation of 190,112 patients discharged in 1999 from 697 facilities. LOS was a strong predictor of cost for VA and non-VA hospitals. Functional status, measured by Functional Independence Measure (FIM) scores at admission, was statistically significant but added little explanatory value after controlling for LOS. Although FIM scores were associated with LOS, FIM scores accounted for little variance in cost after controlling for LOS. These results are most applicable to researchers conducting cost-effectiveness analyses.average costs, billing, charges, cost, health economics, micro-cost methods, reimbursement, rehabilitation, VA, veterans

Method and Apparatus for Generating Flight-Optimizing Trajectories

An apparatus for generating flight-optimizing trajectories for a first aircraft includes a receiver capable of receiving second trajectory information associated with at least one second aircraft. The apparatus also includes a traffic aware planner (TAP) module operably connected to the receiver to receive the second trajectory information. The apparatus also includes at least one internal input device on board the first aircraft to receive first trajectory information associated with the first aircraft and a TAP application capable of calculating an optimal trajectory for the first aircraft based at least on the first trajectory information and the second trajectory information. The optimal trajectory at least avoids conflicts between the first trajectory information and the second trajectory information

Comparative analysis of genome tiling array data reveals many novel primate-specific functional RNAs in human

BACKGROUND: Widespread transcription activities in the human genome were recently observed in high-resolution tiling array experiments, which revealed many novel transcripts that are outside of the boundaries of known protein or RNA genes. Termed as "TARs" (Transcriptionally Active Regions), these novel transcribed regions represent "dark matter" in the genome, and their origin and functionality need to be explained. Many of these transcripts are thought to code for novel proteins or non-protein-coding RNAs. We have applied an integrated bioinformatics approach to investigate the properties of these TARs, including cross-species conservation, and the ability to form stable secondary structures. The goal of this study is to identify a list of potential candidate sequences that are likely to code for functional non-protein-coding RNAs. We are particularly interested in the discovery of those functional RNA candidates that are primate-specific, i.e. those that do not have homologs in the mouse or dog genomes but in rhesus. RESULTS: Using sequence conservation and the probability of forming stable secondary structures, we have identified ~300 possible candidates for primate-specific noncoding RNAs. We are currently in the process of sequencing the orthologous regions of these candidate sequences in several other primate species. We will then be able to apply a "phylogenetic shadowing" approach to analyze the functionality of these ncRNA candidates. CONCLUSION: The existence of potential primate-specific functional transcripts has demonstrated the limitation of previous genome comparison studies, which put too much emphasis on conservation between human and rodents. It also argues for the necessity of sequencing additional primate species to gain a better and more comprehensive understanding of the human genome

Biodegradable Luminescent Silicon Quantum Dots for Two Photon Imaging Applications

Cadmium- and lead-based quantum dots are normally coated for biological applications, because their degradation may result in the release of toxic heavy metal ions. Here, we synthesize silicon quantum dots that are expected to biodegrade to non-toxic products. A chitosan coating is used to render the silicon quantum dots stable in storage conditions and biodegradable at physiological conditions. The applications of these particles are demonstrated in cellular imaging with single and two-photon excitation. These results open the door for a new generation of silicon quantum dots that may have a wide variety of applications derived from the flexibility of chitosan

Modelling single-person and multi-person event-based synchronisation

A linear phase correction model has been shown to accurately reflect the corrective processes involved in synchronising motor actions to an external rhythmic cue. The model originated from studies of finger tapping to an isochronous metronome beat and is based on the time series of asynchronies between the metronome and corresponding finger tap onsets, along with their associated intervals. Over recent years the model has evolved and been applied to more complex scenarios, including phase perturbed cues, tempo variations and, most recently, timing within groups. Here, we review the studies that have contributed to the development of the linear phase correction model and the associated findings related to human timing performance. The review provides a background to the studies examining single-person timing to simple metronome cues. We then further expand on the more complex analyses of motor timing to phase and tempo shifted cues. Finally, recent studies investigating inter-personal synchronisation between groups of two or more individuals are discussed, along with a brief overview on the implications of these studies for social interactions. We conclude with a discussion on future areas of research that will be important for understanding corrective timing processes between people