This paper explores the risk structure of interest rates. The focus is on whether yields on
industrial bonds indicate that market participants base their evaluations of a bond issue's default …

This paper develops a model of bond prices and yield spreads that incorporates the effect of
both taxes and differences in default probabilities. The tax loss consequences of default are …

In this paper we have extended the Bierman-Hass model to include the effect of a second
parameter, the terms of settlement in the event of default. The addition of this second factor …

In this paper, we examine the proposition that both the structures of conglomerate firms and
their merger activities evidence a systematic attempt to diversify income sources and reduce …

In the last two decades a considerable controversy has centered around the discounting of
future taxes for servicing the national debt. With the exception of the Tanner [7] and Kochin [3] …

The behavior of the firm under uncertainty and the valuation of risky assets are basic
concerns of contemporary economic and financial theorists. In this study, we present several …

This paper is concerned with the problem of price regulation when demand is uncertain.
Uncertainty gives rise to substantial difficulties in determining both the return a firm's owners …

The purpose of this paper is to investigate the relative importance of yield volatility and
durationl in determining a bond's price volatility. Although our analysis is confined to default-free …

The analysis demonstrates that the differential tax effects on borrower and lender create a
bias toward inclusion of a call provision. All else being equal, corporate borrowers will always …

It is our feeling that much of the confusion over measuring the effect of refunding on shareholder
wealth is due to the assumption that, in order to value the benefits from refunding, one …