Helwege, Jean; Turner, Christopher M. - In: Journal of Finance 54 (1999) 5, pp. 1869-1884
Many theoretical bond pricing models predict that the credit yield curve facing risky bond issuers is downward-sloping. Previous empirical research (Sarig and Warga (1989), Fons (1994)) supports these models. Our study examines sets of bonds issued by the same firm with equal priority in the...