Pricing Of Convertible Bonds In Chinese Market

Nowadays,China stock market is in the depression,the stock price trend is difficult to predict,to investors to increase the risk of investment behavior.Convertible bonds have a unique advantage as a special trading product that can be converted into stocks when the stock price rises and can continue to be held as a bond when the stock price falls.This article contains six chapters,using several methods,from several angles to study the convertible bonds,and using relevant models to discretize the time between the valuation date and expiration date of the convertible bonds.Through the analysis of the rights of each discrete node execution,calculate each bond value of discrete nodes,then analyse the price.Finally,empirical research is carried out on the convertible bonds existing in the Chinese market.The first chapter reviews the convertible bonds' history,the development and the current ones on the market.In the following,reviews the work about convertible bonds.Finally,introduces the innovation of this article.The second chapter introduces the characteristics of convertible bonds and its own advantages,and puts forward the importance and practical significance of pricing.In the third chapter,introduces the Monte Carlo simulation methods,trinomial tree model,bonds and options separation method respectively,and use these three pricing methods to analyze the convertible bonds in China.In the fourth chapter,introduces what influence the value,and evaluate the influence degree and direction.In the fifth chapter,use program software and Excel for simple data processing.Use the methods introduced to test the selected sample bonds respectively,get the theoretical value,and analyze and compare various methods.Meantime,the error rate is analyzed.In the sixth chapter,based on the final pricing,states the conclusions and looks forward to the future.