The Design Of Warrant Bond Based On Bank Financing

Under the background of the structural reform of supply-side and considering the situations of financial pressure of our society,we designs a new kind of warrant bond based on bank financing.This warrant bond can be divided into two parts.One part is common bond for commercial banks,the other part is the warrant for other investors.We use the convertible bond of the bank of China as a example,make it into two parts as the warrant bond based on bank financing and use some common model to price them.The study shows that using the B-S model for the warrant and the DCF model for the common bond has a good result.We analyze the demands of potential market participants,and give some advice such as restraining the speculation of warrant market,enhancing investors instruction and doing responsible investigation carefully.