The Decision Model of Issuing Company's Convertible Bond

Considering the condition and the time of actualizing three options,the amount of convertible bond remained can be got.According to the amount of convertible bond remaining,the convertible bond financing decision-making model based on bankruptcy is established.Due to three extreme results of the financing decision,the financing scope of convertible bond is gained.The result shows that the implementation of conversion rights,redemption rights and the right to sell back will affect the number of convertible bonds.The number of convertible bonds can be gained under the different changes of stock price.The number of convertible bonds will affect the capital structure.The more the number of remaining convertible bonds has,the more the interest companies need to pay,the greater the risk of bankruptcy is.To ensure that enterprises are not in bankruptcy,maximizing the value of the enterprise can help decision-making on convertible bond financing.