If you need to fetch via AJAX, to set headers or something, check out URL.createObjectURL(). Given a chunk of bytes, it can give you something suitable for the src of the iframe.
var xhr = new XMLHttpRequest();
xhr.open('GET', 'some.pdf');
xhr.onreadystatechange = handler;
xhr.responseType = 'blob';
xhr.setRequestHeader('Authorization', 'Bearer ' + token);
xhr.send();
function handler() {
  if (this.readyState === this.DONE) {
    if (this.status === 200) {
      // this.response is a Blob, because we set responseType above
      var data_url = URL.createObjectURL(this.response);
      document.querySelector('#output-frame-id').src = data_url;
    } else {
      console.error('no pdf :(');
    }
  }
}
The object URLs are pretty interesting. They're of the form blob:https://your.domain/1e8def13-3817-4eab-ad8a-160923995170. You can actually open them in a new tab and see the response, and they're discarded when the context that created them is closed.
Here's a full example: https://github.com/courajs/pdf-poc