Pricing Model And Analysis Of Green Bonds

Green bonds are generally regarded as bond debt vouchers that are raised by government departments,financial departments,companies or enterprises in the face of the society,and are specifically used to meet the requirements of green projects or to refinance these projects,while guaranteeing that after a certain period of time,interest is paid at the interest rate and principal is repaid in accordance with previous agreements.Green bond is a tool developed gradually in the financial field in recent years.The core characteristic of green bond is that it collects itself and concentrates on achieving green environmental benefits.In recent years,as an important part of green finance,green bonds have developed rapidly in China.From 2016 to 2017,167 domestic labeled green bonds were issued,with a total issuance scale of 479.91 billion yuan in China and abroad,accounting for 27%of the global issuance scale in the same period.In the first half of 2018,45 domestic labeled green bonds were issued,an increase of 25%over the same period in 2017.In the future,the market potential of green bonds will be enormous.Discussing the pricing model of green bonds will further enhance the participation of both sides in the green bond market.Therefore,this paper analyses the price of green bonds in China through theoretical analysis and empirical test.The main contents are as follows:Firstly,the current development and research status of green bonds at home and abroad,as well as the bond pricing model are sorted out as the theoretical basis of this paper.Secondly,the green market is studied,and the development status of green bond market is introduced,including the concept,types,characteristics,functions and operation modes of green bond.Thirdly,it explores the establishment of the binary tree model for green bonds,and chooses more complete data for empirical analysis.The result shows that the price of green bonds in our country is apparently underestimated.This article combines the actual situation of China's green bond market,analyzes the phenomenon of underestimation of the price of green bonds,perfects the pricing theory of the green bond market,and provides reference for the issuers and investors of green bonds.