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arXiv · 1509.01218

Tax Bond Creation Using a Structural Model and its Extensions

Suren Harutyunyan
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Abstract

This article describes and explores taxes and debt in finance. Here a situation is thought about, where tax payments would qualify to be considered as debt. Using this principle we can infer that it is possible to create and price a type of bond (Tax Normalization Guarantee) for companies, which would allow them to enter in temporary tax breaks to allow them to free capital. Finally it is explored a way to structure these bonds in financial products and valuate them.

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Suren Harutyunyan. 2015-05-14. Tax Bond Creation Using a Structural Model and its Extensions. https://arxiv.org/abs/1509.01218

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