Research On The Convertible Bond's Pricing In China

With the development and perfection of the capital market in China, convertible bond (CB), which is the familiar financing mode in the west developed countries, is gradually accepted and used. It not only exploits the financing channel of enterprises and extends the modes of market investment, but also is important to flourish and promote the development of securities market.The article introduces the development of CB in China and new trend of CB market that is changed by the QFII entering and the issued Fund of CB. At the same time, the article takes the CB's value into two parts: the bond's value and the options's value. It discusses the theoretic pricing model of CB on the base of Black-Scholes model and validates the uniform degree about Guodian's CB between the result, which is calculated by theoretic pricing model, and actual price to provide the reference about CB's issue and investment.