An Application Study on the Pricing Model for Convertible Bonds in China

As the pricing theories of convertible bonds are not fully studied, there appear some problems, such as the market price being low and the income not matching the risks; moreover, the existing theories don't fully consider the credit risks. In this paper, based on the Black-Scholes model, we build the pricing model for convertible bonds considering the credit risk and according to the practical situation in China, finally we verify the model using Youngor convertible bond, and get some important conclusions