This article examines corporate debt values and capital structure in a unified analytical framework. It derives closed-form results for the value of long-term risky debt and yield spreads. The results elucidate the different behavior of junk bonds versus investment-grade bonds.
This article examines corporate debt values and capital structure in a unified analytical framework. It derives closed-form results for the value of long-term risky debt and yield spreads. The results elucidate the different behavior of junk bonds versus investment-grade bonds.
This article examines corporate debt values and capital structure in a unified analytical framework. It derives closed-form results for the value of long-term risky debt and yield spreads. The results elucidate the different behavior of junk bonds versus investment-grade bonds.