Research On The Value Of Exchangeable Bond

With the capital shortage,the restructuring of traditional tools is becoming more and stricter.In recent years,a new type of bond varieties,both "equity" and "debt" of exchangeable bonds are popular.As the terms of exchangeable bonds are complex and flexible,their value is difficult to estimate in a comprehensive and accurate way.If the value of the exchangeable bonds can be effectively and effectively estimated,the issuer can set the terms reasonably and meet the motives of the issuance.The investors can also estimate the true value of the bonds and improve the investment income through the factors such as the terms and the characteristics of the company.Firstly,the article analyzes the characteristics of public and private exchangeable bonds by contrast method,and summarizes the complementary design of terms of exchangeable bonds under the motive of state-owned shares reduction or financing reform.Second,the article examines the factors that affect the level of exchangeable bond interest rates.Through the weighted least squares regression model,the relationship between the level of debatable debt and the characteristics of the issuer,the characteristics of the underlying company,the stock volatility,the scale of issuance and other factors are explored.The results of the regression are found in the issuance of exchangeable bonds,The maturity of the debt to take into account the time when the underlying stock fluctuations and the issuance of the company,the underlying company both the risk and future growth and other basic characteristics.Finally,the use of case analysis to study the "15 Guosheng EB" intrinsic value.Based on the characteristics of exchangeable bonds,considering the value of additional terms and designing the improved Black-Scholes(BS)model,it is found that the intrinsic value of the "15 countries Sheng EB" clause is higher than the actual price and the two Improvement program.In addition,the article also uses the modified Jones model to study whether the value of exchangeable bonds need to consider the issue of earnings management.The results show that the underlying company has earnings management,hidden profits,and reduced the equity value of exchangeable bonds.