Corporate Bond Pricing Model

Enterprise bond market is an important component of the capital market. In China, after 10 years of development, in spite of the great development, China's bond market has still a big gap with the foreign mature enterprises bond markets, showing the features of a "strong stock market, weak bond market;strong public bond market, weak corporate bond market". Further development and improvement of enterprise bond market is not only very necessary, but very urgent. The development of the corporate bond market is inevitable and urgent requirement of the development of China finance, and pricing is the primary technical issues of the bond market.Recalling the classic bond pricing theory and summing up the current domestic and foreign research situation of this issue, the research idea of this paper is presented. The factors which affect the price of enterprise bonds are identified into the macroeconomic factors and the financial situation of the enterprises. The macroeconomic factors' impacts on the bond price are shown by the Yield Curve, the financial situation of the enterprises mainly is studied through the corporate financial indicators.Firstly the Yield Curve is studied in the article, and through the establishment of the factor analysis models and the ADL, the main macroeconomic factors that affect the Yield Curve are found out. Then the research how the enterprises bond price is decided is studied by synthetically considering these macroeconomic factors with the financial indicators. Finally, a Chinese enterprises bond pricing models is raised.