The Analysis Of Bonds Pricing Based On Credit Risk

In Western countries, the bond is the first choice of company's financing tool. Therefore, corporate bonds play an extremely important role in the financial markets and capital markets. In China, corporate bonds are also the primary stage of the research. Research pricing, measure of risk and prevention of corporate bonds, it has important practical significance to promote bond market development and construct to optimize the financial market structure.In this paper, we start from the basic bond pricing theory, reference abroad more comprehensive theory of the term structure, use continuous-time case and default of corporate bonds pricing method:the Structural Approach and the Reduced-Form Approach, then discredited the two methods, and combined binomial model, then there is a depth analysis to the credit risk of corporate pricing bonds.The specific structure of this paper is as follows:The first chapter is the introduction and overview. The second and third chapters are the theoretical basis of this study, that is the interest rate risk and the credit risk management, and on this basis, give the pricing model for corporate bonds. In the fourth chapter, using the Risk-neutral principle gives a bond pricing under the case of default in continuous time:the Structural Approach and the Reduced-Form Approach, And then using these two methods and risk-neutral pricing theory, give the proof of pricing theorem. Finally, in case of default, it gives depth analysis on corporate bond pricing under the binomial model and credit default risk.