| At present,there are many financing methods for enterprises in our country.Issuing corporate bonds is an important way for enterprises to raise funds.Therefore,many enterprises are financing through this way.However,in the financing process,interest rate risk is still a serious problem.Although interest rate risk is a systematic risk,how to effectively avoid interest rate risk for investors and fund raisers needs our attention.Therefore,how to efficiently measure and guard against interest rate risk of bonds and their combinations needs further study.Duration is a tool that can be used to measure different interest rate risks.In order to better control and manage the interest rate risks of corporate bonds,duration can be used as a measurement tool.Moreover,duration,as the earliest interest rate risk measurement model,has reached a fairly high level in foreign countries after more than 70 years of reform and has been widely used,but it is relatively backward in China,so it is particularly important to use duration model to measure and control the interest rate risk of bonds.In this paper,the interest rate risk measurement and control of corporate bonds issued by enterprises is studied through specific cases.The convertible bonds issued by WK Company in 2004 and the credit bonds and mortgage bonds issued in 2008 are selected as the research objects to carry out the interest rate risk measurement and control research.This paper studies the related concepts of interest rate risk,makes a comprehensive comparative study of duration models and methods,and on the basis of briefly describing the existing duration models and theories,quantitatively analyzes the interest rate risk of WK company’s bonds by constructing the corresponding duration models,and makes a sensitivity analysis of the duration of each bond.Finally,the paper analyzes the existing problems in interest rate risk management of WK bonds and the reasons for the formation of interest rate risk,and puts forward corresponding suggestions.This paper uses the research methods of literature search and reading to systematically read,sort out and analyze the literature related to duration.In the practical part,it uses the combination of qualitative and quantitative analysis and case analysis to measure and study the interest rate risk of WK corporate bonds.Finally,the paper puts forward the following suggestions for WK corporate bond interest rate risk measurement and control:(1)develop the habit of using duration to measure bond interest rate risk;(2)control interest rate risk with derivative financial instruments;(3)use Miller’s model to determine the WK interest rate risk range;(4)follow up the change of corporate bond price with interest rate;(5)establish interest rate risk control awareness and establish a risk management effect evaluation mechanism. |
