A Discussion on China's Bond Market Development Based on the Relationship between Bond Price and Return Rate

With China's accession to World Trade Organiztion, the development of financial market and the marketization of interest rate are given more and more attention. From western countries' experiences, the marketization of bond pricing mechanism is usually on the front of the whole financial market reform. I evntured a test on the relationship between China's bond price and return rate by applying bond-pricing theories. Moreover, conscious of the problems existing in China's bond market, I put forward some policy suggestions to promote the marketization of bond pricing mechanism and enhance the development of the bond market.