Fixed Price Theory And Empirical Study On Convertible Bonds

Convertible bonds are the bonds that are issued by a company,according to the due course of law,and that can be changed into shares of the company under the appointed conditions dueing a certain period. This kind of preliminary financial derivative instrument based on the company bond,which combines the characters of bonds and stocks together ,gets extensive attentions of investors and factors all around the world since it's issued,and is also getting attentions of market. In overseas, Convertible bonds have become the important essential constituent of every country's capital market. In our country,along with the development and completion of our country's financial market,convertible bonds also will certainly become into the important constituent of our country capital market. The investment profolio which doesn't contain the convertible bonds will be considered the incomplete investment profolio.Convertible bonds are introduced to our country's capital market in 1990's. Since that time the market of convertible bonds had made great progress in issuing amount and issuing scale in more than ten years, which increasingly becomes the important supplement of our country's capital market. Particularly in the last two years,there are twenty-eight convertible bonds issued in the Shanghai and Shenzhen Exchanges, the Issuing number and the financing scale have exceeded the size of the sum of the past years .Recently many listed companies have announced plans to issue convertible bonds, which has adopted by the Bord, our convertible bonds' market will further grow. But in our country it is fairly new and unfamiliar financing tool, many companies submit plans to issue convertible bonds,which blindly follow the situation more,and their conversion provisions are very similar,what'smore,because the issuing provision of convertible bonds tends to the diversification at present, the attached multitudinous provisions make its pricing study not to be possible to be stopped. This article further discusses the pricing question of convertible bonds on the basis of the...