PIC: An Alternative Approach to Accepting Bids on Local and State Government Bonds

This paper advocates the use of the Present Value of Interest Cost (PIC) method as a theoretically superior technique to both the True Interest Cost (TIC) and Net Interest Cost (NIC) methods for the evaluation of underwriter bids on local and state government bonds.

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Bibliographic Details
Published inFinancial management Vol. 8; no. 2; pp. 36 - 41
Main Authors Osteryoung, Jerome S., Braswell, Ronald C., Blevins, Dallas R.
Format Journal Article
LanguageEnglish
Published Albany, N.Y Financial Management Association 01.07.1979
Financial Management Association International
Blackwell Publishing Ltd
Subjects
Bids
Cash flow
Coupon rates
Coupons
Evaluating Municipal Bond Bids
Evaluation
Financial instruments
Government bonds
Interest
Interest costs
Investment bankers
Local government
Methods
Municipal bonds
Present value
Serial bonds
Techniques
Underwriting
Underwriting pools
Yield curves
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Summary:This paper advocates the use of the Present Value of Interest Cost (PIC) method as a theoretically superior technique to both the True Interest Cost (TIC) and Net Interest Cost (NIC) methods for the evaluation of underwriter bids on local and state government bonds.
ISSN:0046-3892
1755-053X
DOI:10.2307/3665347