On The Pricing Of Collective Bonds Of Small And Medium-Sized Equities

The stable and healthy development of small and medium-sized enterprises (SMEs) plays an irreplaceable role in the process of national economic development. But due to the small size and poor ability to resisting risk, the SMEs face a serious problem for financing. In order to solving this problem of issuing bonds successfully, we must price the collective bonds of SMEs reasonably.There are many kinds of method for pricing of corporate bonds, but mainly about structure model, reduced model and hybrid model. Because of starting late in the collective bond market and not perfect, there are a few people to study the pricing of the collective bonds of SMEs.At present, the domestic researchers mainly through reduced model to study this security pricing. But almost of the researchers ignore the effect of mutual relationship between value of small and medium-sized enterprises and value of collective bonds of SMEs.In this paper, I use structure model to price unsecured collective bond on the basis of their research results and use reduced model to price secured collective bond. I use the PDE method to obtain a closed-form solution of equations of unsecured collective bond. Finally, I analyze the effect of the enterprise value to the value of collective bonds.