Convertible Bond Price Analysis And Case Studies

Convertible Bonds is a new financial instrument which based on corporation bonds and permit the holder convert the CB(Convertible Bonds)into an normal stock issued by this corporation or other corporations. Because CB not only has financing function but also can avoid financial risk, so it owns its special advantage. While as for Chinese capital market,CB still is a new breed, many people not yet know its characteristics and appendents,especially its investment value and price.Therefore,this paper want to make a value analysis and pricing model research.First this paper reviews CB's history, then point out it has bonds side and stock side. After that, this paper analyzes its basic factors, investment specialty and risk, investment value and the structure of the value as well as the relationship between them. At last, this paper utilize Black-Scholes Model to calculate some CB have been issued in domestic market and verify the rationality of the real price .