01933cas a2200289 a 4500 AALejournalIMF010782 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874372 1018-5941 BD-DhAAL BD-DhAAL Neftci, Salih. Puttable and Extendible Bonds : Developing Interest Rate Derivatives for Emerging Markets / Salih Neftci, Andre Santos. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the price stabilizing properties of puttable and extendible bonds, their potential to help develop interest-rate derivative markets, and their use by governments. Their stabilizing properties imply that, when bond prices fall, prices for puttable and extendible bonds fall by less. Their embedded options work as a cushion and replicate the trading gains from hedging long-term bonds with interest rate derivatives. These bonds can help develop interest-rate derivative markets in developing countries and eventually increase demand for long-term government bonds. Informal evidence from OECD countries suggests that these bonds were useful in the 1980s, when interest rates were volatile. Mode of access: Internet Contingent Pricing imf Futures Pricing imf Option Pricing imf Santos, Andre. IMF Working Papers; Working Paper ; No. 2003/201 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/201/001.2003.issue-201-en.xml IMF e-Library