ON THE PRICING OF CORPORATE DEBT: THE RISK STRUCTURE OF INTEREST RATES*

Why this mattered

TBD

Abstract

Presented at the American Finance Association Meeting, New York, December 1973.

Related

• cite → The Pricing of Options and Corporate Liabilities — Merton adapts the Black-Scholes option-pricing framework by modeling risky corporate debt as contingent claims on firm value.
• cite ← Theory of the firm: Managerial behavior, agency costs and ownership structure — Jensen and Meckling use Merton's corporate-debt pricing framework to connect leverage, default risk, and agency costs.
• cite ← Determinants of corporate borrowing — Myers's corporate-borrowing theory uses Merton's structural debt-pricing model to connect leverage choices with default risk and debt value.

Sources

• DOI: https://doi.org/10.1111/j.1540-6261.1974.tb03058.x
• OpenAlex: https://openalex.org/W2105973145