Convertible bond valuation focusing on Chinese convertible bond market

This paper mainly discusses the methods of valuation of convertible bonds in Chinese market. Different from common convertible bonds in European market, considering the complicate features of Chinese convertible bond, this paper represents specific pricing approaches for pricing convertible bonds wi...

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Main Author: Yang, Ke
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2010
Online Access:https://eprints.nottingham.ac.uk/23710/
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author Yang, Ke
author_facet Yang, Ke
author_sort Yang, Ke
building Nottingham Research Data Repository
collection Online Access
description This paper mainly discusses the methods of valuation of convertible bonds in Chinese market. Different from common convertible bonds in European market, considering the complicate features of Chinese convertible bond, this paper represents specific pricing approaches for pricing convertible bonds with different provisions along with the increment of complexity of these provisions. More specifically, this paper represents the decomposing method and binomial tree method for pricing both of Non-callable, Non-puttable Convertible Zero-coupon bond, Pricing Callable, Non-puttable Convertible Zero-coupon bond and Pricing Callable, Puttable Convertible Zero-coupon bond. Additionally, this paper gives out one possible solution for pricing Callable, Puttable, Resettable Convertible Zero-coupon bond. Furthermore, influence of company’s credit risk on valuation of convertible bond is discussed as well. According to the analysis of valuation error, some possible improvements in the valuation process are represented.
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format Dissertation (University of Nottingham only)
id nottingham-23710
institution University of Nottingham Malaysia Campus
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language English
last_indexed 2025-11-14T18:47:16Z
publishDate 2010
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spelling nottingham-237102018-02-15T05:24:08Z https://eprints.nottingham.ac.uk/23710/ Convertible bond valuation focusing on Chinese convertible bond market Yang, Ke This paper mainly discusses the methods of valuation of convertible bonds in Chinese market. Different from common convertible bonds in European market, considering the complicate features of Chinese convertible bond, this paper represents specific pricing approaches for pricing convertible bonds with different provisions along with the increment of complexity of these provisions. More specifically, this paper represents the decomposing method and binomial tree method for pricing both of Non-callable, Non-puttable Convertible Zero-coupon bond, Pricing Callable, Non-puttable Convertible Zero-coupon bond and Pricing Callable, Puttable Convertible Zero-coupon bond. Additionally, this paper gives out one possible solution for pricing Callable, Puttable, Resettable Convertible Zero-coupon bond. Furthermore, influence of company’s credit risk on valuation of convertible bond is discussed as well. According to the analysis of valuation error, some possible improvements in the valuation process are represented. 2010-09-08 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23710/1/Convertible_bond_valuation_Ke_Yang.pdf Yang, Ke (2010) Convertible bond valuation focusing on Chinese convertible bond market. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Yang, Ke
Convertible bond valuation focusing on Chinese convertible bond market
title Convertible bond valuation focusing on Chinese convertible bond market
title_full Convertible bond valuation focusing on Chinese convertible bond market
title_fullStr Convertible bond valuation focusing on Chinese convertible bond market
title_full_unstemmed Convertible bond valuation focusing on Chinese convertible bond market
title_short Convertible bond valuation focusing on Chinese convertible bond market
title_sort convertible bond valuation focusing on chinese convertible bond market
url https://eprints.nottingham.ac.uk/23710/