Convertible Bonds Of Listed Companies Pricing Method

As the growth of stock market, China has imported convertible bonds from the west.Convertible bond is a kind of bond,which embeded a converting option,it's more complex than stocks and bonds. On the current reality of China's securities market, Convertible bond pricing research has important theoretical and highly practical significance. Therefore, how to draw lessons from abroad to make our pricing more reasonable and perfect, in order to guide and help investors has become the urgent and important topic.In this paper, on the basis of the domestic and foreign convertible bonds pricing research, according to China's capital market, the characteristics of convertible bonds, convertible bonds will be divided into the value of bonds and options in two parts, discounted the cash flow to calculate the pure bond value, then use Black-Scholes formula to calculate the part of the option values. Amending the options pricing model,and added impact on the dividend factors, and the transaction cost factor to the model. On this basis, the response to our convertible bond market has actually done to verify that the effect of model updating. So that it can be used to predict and guide the practice, so that investors can be the price of convertible bond investment in a rational manner.