Optimization Of Green Bond Valuation Model

Our economy has maintained a good development momentum after reform and opening.In recent years,economic growth has gradually slowed down,and economic quality improvement and sustainable development have become the new focus,which creates a favorable environment for green finance.Green bonds are an indispensable part of the green finance system and have contributed to a substantial increase in direct investment in green industries.Due to the fact that the green bond market started late in China,is lacking in perfect system but of numerous types,the current valuation method of green bonds is exactly same as that of ordinary bonds.Therefore,it is the focus of this paper to find out a reliable and accurate valuation model that can be widely used in our green bond market.This paper takes green bonds as the research object,including five parts: First,discusses the relevant theoretical basis of green bonds,including the concept of green bonds,bond valuation theory and relevant research results at home and abroad.Second,this paper explores the characteristics of the development of the green bond in our country according to the realities.Combining with the value influence factors of the green bond,it puts forward the difficulty in its valuation.Third,the paper analyzes the advantages and disadvantages of the existing bond valuation models,and expounds that the option adjusted spread model has good applicability to green bonds.Fourth,combined with the reality and the problems existing in the option adjustment spread estimation,the optimization design of the green bond valuation model is carried out,mainly aiming at the optimization of the spread estimation brought by the green attribute of bonds.Based on the historical data,multiple linear regression model was established to predict the option adjustment spread of green bonds,with the CIR model and Monte Carlo simulation combined to discount the cash flows under each interest rate path,and then the theoretical value of green bonds was obtained.Fifth,"22 Zhongcai G1" is selected as a case for analysis,and compared with the bond trading price to verify the effectiveness of this optimization scheme.This paper is intended to make fair valuation of green bonds by constructing an optimized options-adjusted spread model,and make effective valuation suggestions on the financing behavior of issuers and investors of green bonds.Based on the quantitative research on the influence of green attributes,this paper proposes an optimization for the valuation of green bonds,making it applicable to various types of green bonds and providing reference significance for the further improvement of the valuation model.This optimization model can verify the rationality of the issuing price of green bonds in the primary market,provide valuation suggestions for bond traders,help investors make correct decisions to construct reasonable valuation schemes,and help green enterprises to raise money through green bonds,thus promoting the sustainable development of green economy.