Appendix 2
Partial Derivatives for Systematic Risk of Company Debt by Galaï and Masulis (1976)

The partial derivatives for the systematic risk of the debt when the company’s systematic risk is stable and positive image are as follows:

[A2.1]image
[A2.2]image
[A2.3]image
[A2.4]image
[A2.5]image
[A2.6]image

with:

[A2.7]image
[A2.8]image

and:

[A2.9]image
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