Pricing And Investment Strategy Research Of Convertible Bonds

The Convertible Bonds has developed more than one hundred years since it was invented in 1831.It appears in China for only more than 10 years,but as one of the few derivatives financial instruments in China,it was quite concerned by many scholars.In current capital market,which just experienced violent ups and downs in 2007 and 2008,many stock funds suffered heavy losses.Therefore,it is necessary to do deeper research on pricing and investment Strategy of Convertible Bonds,which is a special Investment product with asymmetrical risk and profit.As a special kind of investment vehicle,the analysis of convertible bonds is focused on the pricing and investment strategy of Convertible Bonds.ChapterⅠis preface and introduce the purpose and significance of our work,also discuss and give a summary of recent progresses in Convertible Bonds research,and then,figure out the high lights of the paper.In ChapterⅡ,the paper analysis the values constitute and influencing factors of Convertible bonds,based on which we calculate the theoretical value of 14 convertible bonds in the market using Black-Scholes option pricing method and the binomial tree model.According to an empirical study on the price fluctuations of convertible bonds,which study the relationship among the market of Convertible bonds,equity and bond,the paper figure out the characteristics and market performance of Convertible Bonds In ChapterⅢChapterⅣtalks about strategies of investment on convertible bonds in an empirical study.Firstly it introduces the development and recent situation of convertible bonds in China.Secondly strategies of investment on convertible bonds are divided into two parts:timing strategy and species strategy.Finally we put the strategies of investment into practice.