Skip Navigation

Duane R Stock

Skip Side Navigation

Duane Stock

Professor Emeritus of Finance
Oklahoma Bankers Chair in Finance

Duane Stock

Department: Finance Division
Program Area
: Banking,corporate bonds, fixed income options, municipal bonds
Office: Adams Hall 3262
Phone: (405) 325-5690
Address:  307 West Brooks, Room 3262
Norman, OK 73019

Personal Website

PhD (Illinois) Professor Stock's teaching interests include financial markets, banking and investments. His research interests include corporate bonds, municipal bonds, options, interest-rate risk, and banking. He holds the Oklahoma Bankers Chair in Finance. He has twice received research grants from the Prochnow Education Foundation to conduct banking research. His articles have been published in Journal of Finance, Journal of Financial and Quantitative Analysis, Journal of Accounting Research, Decision Sciences, National Tax Journal, Journal of Financial Research, Journal of Banking and Finance and The Financial Review.


  • University of Oklahoma Associates Distinguished Lecturer Award
  • University of Oklahoma Partners in Learning Award for Mentoring and Research
Degrees Earned:
  • Ph.D. in Finance, University of Illinois (Champaign-Urbana)
  • Master of Science, Southern Illinois University-Edwardsville. M.S. in both Economics and City Planning
  • Bachelor of Arts in City Planning, Southern Illinois University-Edwardsville
"Improved Techniques in Predicting Municipal Bond Ratings" (co-authored) Journal of Bank Research, Volume 12, number 3, Autumn 1981, pages 153-160.

"A Canonical Correlation Analysis of Municipal Bond Portfolio Performance" Review of Business and Economic Research, Volume 27, number 1, Fall 1981, pages 64-70.

"Does Active Management of Municipal Bond Portfolios Pay?" Journal of Portfolio Management, Volume 8, number 2, Winter 1982, pages 51-56.

"An Empirical Analysis of Municipal Bond Portfolio Performance and Structure" Journal of Financial Research, Volume 5, number 2, Summer 1982, pages 171-180.

"Determinants of the Use of Banking Facilities: Trips to the Bank in Oklahoma" (with Neil Murphy) Review of Regional Economics and Business, October 1983.

"Multivariate Normality Testing and Decision Models" (with Collin and Kent Watson) Decision Sciences, Volume 14, number 4, Fall 1983, pages 513-526.

"Human Judgment Accuracy, Multidimensional Graphics, and Humans Versus Models" (with Collin Watson) Journal of Accounting Research, Volume 22, number 1, Spring 1984, pages 192-206.

"Municipal Bond Demand Premiums and Bond Price Volatility: A Note" (co-authored) Journal of Finance, Volume 39, number 2, June 1984, pages 535-539.

"Relative Price Volatility of Bonds with Differing Credit Risk" (with Edward L. Schrems) Journal of Economics and Business, Volume 36, number 3, August 1984, pages 291-306.

"The Impact of State Income Taxes on Municipal Borrowing Costs" (with D. Kidwell and T. Koch) National Tax Journal, Volume 37, number 4, December 1984, pages 551-562.

"Price Volatility of Municipal Discount Bonds" Journal of Financial Research, Volume 8, number 1, Spring 1985, pages 1-13.

"The Analytics of Tax Effects in Discount Bond Valuation," Financial Review, Volume 21, number 4, November 1986, pages 451-462.
"Issue Size and Term Structure Segmentation Effects on Regional Yield Differentials in the Municipal Bond Market" (with D. Kidwell and T. Koch), Journal of Economics and Business, Volume 39, number 4, November 1987, pages 339-348.

"Tax-Adjusted Duration for Amortizing Debt Instruments" (with D. Simonson) Journal of Financial and Quantitative Analysis, Volume 23, number 3, September 1988, pages 313-328.

"Yield Volatility of Discount Coupon Bonds" (with R H Gilmer) Journal of Financial Research, Volume 11, number 3, Fall 1988, pages 189-200.

"An Analysis of When to Exercise a Tax Timing Option on Premium Bonds," Journal of Financial and Strategic Decisions, Volume 2, number 1, Spring 1989, pages 11-32.

"Bond Returns and Betas as Dependent Upon Conditioned Brownian Motion" Journal of Economics and Business, Volume 42, number 4, November 1990, pages 311-324.

"Duration Mapping of Thrift Institution Value Paths: Tests of Completeness" (with Don Simonson) Journal of Banking and Finance, Volume 15, number 3, April 1991, pages 297-314.

"The Analytics of Relative Holding Period Risks for Bonds" Journal of Financial Research, Volume 15, number 3, Fall 1992, pages 253-264.

"Bond Yields Compared to Amortizing Yields" (with T.K. Bhattacharya) Review of Quantitative Finance and Accounting, Volume 3, number 3, Fall 1993, pages 325-337.

"Term Structure Effects on Default Risk Premia and the Relationship of Default-Risky Tax Exempt Yields to Risk Free Taxable Yields – A Note" Journal of Banking and Finance, Volume 18, number 1, December 1994. pages 1185-1203.

"The Impact of Junior Debt Upon Systematic and Unsystematic Risk of Senior Debt" (with John Hu) Advances in Quantitative Analysis of Finance and Accounting, Volume IV, 1996, pages 195-216.

"State Tax Codes and Municipal Bond Interest Rates" National Association of Bond Lawyers Quarterly Newsletter, Volume 17, number 1, March 1996, pages 61-64.

Abstract in Journal of Finance, "Priority and Maturity Effects in Debt Financing: An Investigation of the Impact of Junior Debt Issuance Upon Senior Debt Value" (with Scott Linn) July 1996, Volume 51, number 3, page 1058.
"Par Coupon Yield Curves for Callable Bonds and Amortizing Instruments" Financial Practice and Education, Volume 6, number 2, Fall/Winter 1996, pages 49-59.

This article was chosen to be abstracted and summarized in three pages of The CFA Digest, Summer 1997 (Volume 27, number 3) due to its usefulness to the CFA profession.

"An Analysis of Implied Tax Rates on Long Term Taxable and Tax Exempt Bonds" (with Tim Koch) Journal of Business Research, Volume 38, number 2, February 1997, pages 171-176.

"The Effect of Interest Rates on the Value of Corporate Assets" (with V. Lesseig) Review of Quantitative Finance and Accounting, Volume 11, Fall 1998, pages 5-22.

"The Impact of Volatility on Duration of Amortizing Debt with Embedded Call Options" (with Bryan Stanhouse) Journal of Fixed Income, Volume 8, September 1998, pages 87-94.

"Variations in the Impact of Embedded Call Features Upon Par Coupon Yields" (with Bryan Stanhouse), Journal of Applied Corporate Finance, Spring 1999, Volume 12, Number 1, pages 92-99.

"The Impact of Correlation of Asset Value and Interest Rates upon Duration and Convexity of Risky Debt" (with Vance Lesseig), Journal of Business Research, September 2000,Volume 49, Number 3, pages 289-302.

“Embedded Options and Interest Rate Risk for Insurance Companies, Banks, and Other Financial Institutions” (with Jae Ha Lee), Quarterly Review of Economics and Finance, Summer 2000, Volume 40, Number 2, pages 169-188.

“The Optimal Redemption Schedule of Serial Municipal Debt: A Dynamic Reconciliation of Revenues, Reinvestment Rates and the Term Structure” (with Bryan Stanhouse), Review of Quantitative Finance and Accounting, Winter 2001, Volume 16, Number 1, pages 5-32.

“Debt Schedules of Tax-Exempt Bonds Using NIC” (with Bryan Stanhouse) Financial Markets, Institutions and Instruments, (NYU) December 2001, Volume 10, Issue Number 5, pages 234-252.
“The Impact of Call Features on Corporate Bond Yields” (with Louis Ederington) Journal of Fixed Income, September 2002, Volume 12, Issue Number 2, pages 1-11.

“The Impact of Loan Prepayment Risk and Deposit Withdrawal Risk on the
Optimal Intermediation Margin” (with Bryan Stanhouse), Journal of Banking and Finance, August 2004, Volume 28, Number 8, pages 1825-1843.

“The Impact of Junior Debt Issuance on Senior Unsecured Debt’s Risk Premiums” (with Scott Linn), Journal of Banking and Finance, June 2005 Volume 29, Number 6, pages 1585-1609.

“Investment and Financing Activity Following Calls of Convertible Bonds” (with Michael Alderson and Brian Betker), Journal of Banking and Finance, Volume 30, Issue 3, March 2006, pages 895-914.

“Models of Conditional Variance for Bond Prices,” (with Naren Pappu and S. Lakshmivarahan), The Journal of Fixed Income, Volume 16, Number 1, June 2006, pages 65-70.

“Explaining Municipal Bond Volatility: Implications for Practice” (with S. Lakshmivarahan) Municipal Finance Journal, Volume 27, Number 1, Spring 2006, pages 1-33.

“Less Risk for Strong Returns in Bond Portfolios” (with S. Lakshmivarahan)
The Journal of Fixed Income, Fall 2007, Volume 17, Number 2, pages 46-62. (Listed on Journal of Fixed Income website as one of the most read articles in Fall 2007/Winter 2007)

"Managing the Risk of Loan Prepayments and the Optimal Structure of Short Term Lending Rates” (with Bryan Stanhouse) Annals of Finance, Volume 4, March 2008, pages 197-215.

“Lower Grade Municipal Bond Price Risk and Sensitivity of Price Volatility to Level of Yields” (with S. Lakshmivarahan), Journal of Risk Management in Financial Institutions, April-June 2008, Volume 1, Number 3, pages 320-336.

“Make-whole Call Provisions: A Case of Much Ado about Nothing?” (with Nandukumar Nayar), Journal of Corporate Finance, Volume 14, Number 4, 2008, pages 387-404.

“The Sensitivity of Corporate Bond Volatility to Macroeconomic Announcements” (with Nikolay Kosturov), Handbook of Quantitative Finance and Risk Management, May 2010.
“Analyzing Cost of Debt and Credit Spreads Using a Two Factor Model with Multiple Default Thresholds and Varying Covenant Protection” Advances in Financial Planning and Forecasting, (with S. Lakshmivarahan and Shengguang Qian), Volume 5, 2012, pages 1-48.

“The Distribution of the Value of the Firm and Stochastic Interest Rates”, Journal of Mathematical Finance, (with S. Lakshmivarahan and Shengguang Qian), Volume 2, February 2012, pages 1-8.

“Impact of the TARP Financing Choice on Existing Preferred Stock” Journal of Corporate Finance, with Dong Kim, Volume 18, December 2012, pages 1121-1142.

“The Effect of Interest Rate Volatility and Equity Volatility on Corporate Bond Yield Spreads : A Comparison of Noncallables and Callables”, with Dong Kim, Journal of Corporate Finance, Volume 26, June 2014, pages 20-35.

“Credit Line Takedown and Endogenous Bank Capital” with Bryan Stanhouse, Review of Quantitative Finance and Accounting, 46, May 2016, pages 692-723.

"The Pricing of Different Dimensions of Liquidity: Evidence from Government Guaranteed Bonds" with Jeffrey Black and Pradeep Yadav, Journal of Banking and Finance, 71, October 2016, pages 119-132.

"A Structural Model for Optimal Selection of Maturity and Timing of Callable Bond Issuance: Help in Incorporating the Impact of Federal Reserve Policy and Other Factors" with S. Lakshmivarahan and Shengguang Qian, Journal of Fixed Income, 26, Winter 2017, pages 33-48.

“Does the Choice between Fixed Price and Make Whole Call Provisions Reflect Differential Agency Costs” with Michael Alderson and Fang Lin, Journal of Corporate Finance, 46, October 2017, pages 442-460.

“The Impact of New Debt Offerings on Existing Corporate Bondholders” with Fan Chen, Journal of Financial Research, 41, Fall 2018, pages 383-410.

“How a Credit Enhancement Affects Bond Liquidity and Default Risk of the Firm”, with Jeffrey R. Black and Seth A. Hoelscher, Journal of Fixed Income, forthcoming.
Invited Publications:
"Premium Bond Trading: Before the AMT Applies" (with D. Simonson) United States Banker, November 1986.

"Bond Sale Repurchase Decisions and Swap Analysis Under Fluctuating Tax Rates," monograph for Prochnow Education Foundation, Graduate School of Banking at Madison, Wisconsin, 1987.

Book review of Financial Institutions and Markets by Meir Kohn published in Journal of Finance (March 1995).

“Analysis of the Call Feature on Municipal Debt” published in Government Finance Review, December 1999.