What Makes the Municipal Yield Curve Rise?
The Journal of Fixed Income (Winter 2008)

The municipal yield curve’s permanent upward slope is a logical consequence of that curve being comprised of bonds callable at or close to par after 10 years. Previous researchers have overlooked this simple, straightforward explanation.

The Right Discount Rate Can Save Your Life
Financial Engineering News (January/February 2007)

A tax-exempt borrower should use its taxable yield curve for discounting its own liabilities. The value of options embedded in tax-exempt bonds depends on both the tax-exempt and taxable yield curves.

Subsidized Borrowing and The Discount Rate: The Case of Municipal Capital Budgeting and Financial Management
Municipal Finance Journal (Winter 1999)

Because municipalities limit their tax-exempt borrowings and earn the taxable rate when investing unrestricted fund balances, the taxable rate is the appropriate rate for discounting a municipality’s future cash flows. Using the tax-exempt rate instead can produce wrong decisions about refunding debt and choosing among capital projects.

The Timing of Advance Refunding of Tax-Exempt Municipal Bonds
Municipal Finance Journal (Summer 1998)

A municipal issuer’s decision whether to advance refund a bond should rest on comparing the cash-flow savings from refunding to the embedded total option value in the bond. Once this ratio reaches a specified threshold, the trigger should be pulled.

Refunding Tax-Exempt Corporate Bonds in Advance of the Call
The Financier (February 1994)

Practical, analytic and regulatory aspects of refunding tax-exempt corporate bonds are examined through a case study of a Florida Power & Light tax-exempt bond tender for which AKA served as advisor.