Research on the Practical Application of Valuation Methods for Convertible Bonds
This article starts from the theoretical research on the pricing of convertible bonds.Firstly,the idea and method of using the binomial tree model to price non-option bonds were introduced.Then,this paper explores how to use the binomial tree model to evaluate embedded option bonds by analyzing the relationship between the value of callable bonds and putable bonds,straight bonds,and embedded option bonds.In the form of practical cases,the process of evaluating the value of convertible bonds by establishing an interest rate binomial tree was emphasized.Through research,it has been found that the value of convertible bonds is affected by interest rate fluctuations.Whether it is a redemption option or a put option,its option value will increase with the increase in interest rate volatility.
NETL
NSTL
万方数据
