Convertible Bonds Of Listed Companies Value Analysis And Study Of Arbitrage

Convertible bond is one of the types of corporate bonds, convertible bonds for short, is refers to the investors in convertible bonds into the transformation period can be in accordance with the terms of this bond on the conversion to convert the bond to the company’s shares. From another perspective, convertible bonds is composed of two parts, namely pure bond part and an American call option. Due to a call option embedded on convertible bonds, usually have a lower coupon rate.Convertible bond is a very important financial tool. Convertible bond market development for the development of China’s capital market is of great significance. Compared with financial markets more than developed countries, the convertible bond market in our country is still at a preliminary stage, the development of convertible bond investment value has always been the focus of investors, issuers and regulators. For investors, to master scientific and reasonable analysis of convertible bond investment value of the method is beneficial to investors reasonable asset allocation in order to obtain reasonable returns. For issuers, what value of convertible bond investment determines its attractive to investors and issuers in the capital market financing. For regulators, understand the value of convertible bond investment is conducive to the development of the convertible bonds regulatory laws and regulations and perfect, to promote the prosperity and development of capital market. According to the characteristics of convertible bonds and existing research achievements, this article take the empirical study, using a quantitative method of mathematical statistics, the minsheng bank calculation and analysis of the theoretical value of the convertible bonds, and its price in contrast, analysis the difference between the theoretical value and price, at the same time by minsheng convertible bonds and minsheng bank’s shares to calculate the actual arbitrage strategy can carry value, compared with the former value analysis.In minsheng convertible bonds value calculation, the paper analyze the theoretical value of convertible bonds, and then introduced the discount cash flow method and B-S model to calculate the value of the bond value and option part, in order to calculate the theoretical value, and its price were analyzed.In arbitrage strategy research section, through the arbitrage model to calculate the actual arbitrage value, at the same time, this paper compares and analyzes the difference and give the relevant policy recommendations.