TERM STRUCTURES OF CORPORATE BOND YIELDS AS A FUNCTION OF RISK OF DEFAULT.

The article focuses on the characteristics of corporate bond purchase prices and losses in regards to term-to-maturity elements. Particular modeling is provided plotting term-to-maturity against prospective yields-to-maturity, along with empirical data of bond performance. Data is taken from corporate bond issues between 1900-1944. It is suggested that bond yields are intrinsically connected to default risk calculations and discussion is given applying this conclusion to previous theory conflicts.