Debt service parity approach

Definition:

Payment alternatives that provide the firm with the exact same schedule of after-tax debt payments (including both interest and principal).

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Time spread strategy

Buying and selling puts and calls with the same exercise price but different expiration dates, and trying to profit from the different premiums of the options.

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