Fair Value Measurement For Illiquid Bonds In Stock Exchange Market

This thesis is to identify the fair valuation methodology of illiquid exchange tradedbonds and to apply such fair valuation to such holdings of mutual funds.The thesis is divided in five chapters. First, the historical and present situation of thevaluation business of mutual funds were introduced; second, the theoretical foundation ofbond pricing was described; third, the valuation system of inter-bank bond market and thetrading activity of bonds in stock exchange market were analyzed, which motivates thevaluation issues of illiquid traded bond in the stock-exchange market; forth, the solution ofsuch illiquid bonds in the mutual fund was proposed; finally, the empirical analysis wasoffered.