Call Options, Points, and Dominance Restrictions on Debt Contracts
用套利方法分析合同期限、可赎回性、分期偿还和初始折扣对利率的影响，发现无罚金可赎回的长期工具利率更高，但分期偿还贷款期限对利率影响有限，并利用不可赎回债务的权衡刻画可赎回债务中点数和利率的边界。
ABSTRACT We analyze the impact of a contract's length, callability, amortization, and original discount by arbitrage methods. Among instruments that are callable without penalty, longer instruments command a higher interest rate because the borrower possesses the option of repaying relatively more slowly. However, the rate on longer self‐amortizing loans cannot be substantially larger than for shorter ones because the payments decrease with contract length. Bounds on the trade‐off between points and rate for callable debt are characterized using the trade‐off for noncallable debt and the property that the value of the prepayment option increases with the loan's interest rate.