000			02251cam a22003497 4500
001			w7622
003			NBER
005			20211020113558.0
006			m o d
007			cr cnu||||||||
008			210910s2000 mau fo 000 0 eng d
100	1		_aAmbrose, Brent W. _94894
245	1	0	_aPricing Upward-Only Adjusting Leases / _cBrent W. Ambrose, Patric H. Hendershott, Malgorzata M. Klosek.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2000.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w7622
500			_aMarch 2000.
520	3		_aThis paper presents a stochastic pricing model of a unique, path-dependent lease instrument common in the United Kingdom and numerous commonwealth countries, the upward-only adjusting lease. In this lease, the rental rate is fixed at lease commencement but will be reset to the market rate at predetermined intervals (usually every five years) if it exceeds the contract rent. Numerical results indicate how the initial coupon rate should be set relative to that on a symmetric up-and-downward adjusting variable rate' lease under various economic conditions (level of real interest rates and expected drift and volatility of the underlying rental service flow). We also consider the calculation of effective rents when free rent periods are given during either a market collapse or a steady-state drift.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aR0 - General _2Journal of Economic Literature class.
690		7	_aG12 - Asset Pricing • Trading Volume • Bond Interest Rates _2Journal of Economic Literature class.
700	1		_aHendershott, Patric H. _912634
700	1		_aKlosek, Malgorzata M.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w7622.
856	4	0	_uhttps://www.nber.org/papers/w7622
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w7622
942			_2ddc _cW-PAPER
999			_c340626 _d299188