W. Nicholson, “Microeconomic Theory,” 7th Edition, Dryden Press, Orlando, 1998.

has been cited by the following article:

• TITLE: Equity Participation without Equity: An Analysis of Hope Notes

  AUTHORS: John F. McDonald

  KEYWORDS: Hope Notes; Asset Valuation; Commercial Real Estate

  JOURNAL NAME: Modern Economy, Vol.4 No.5, May 31, 2013

  ABSTRACT: The paper examines the case of splitting a defaulted mortgage loan on a commercial property into an A note that earns interest and a B note that earns a return only if the value of the property increases. The B note is known as a “hope note.” The paper shows that the current methods for structuring such a deal often produce a B note that is worthless. A state-preference model is employed.