Abstract

The study tries to improve the pricing efficiency of pricing models for the convertible bond by calculating the volatility of the underlying stock more accurately. By deducing the relationship between the historical volatility before the convertible bond issue which can be calculated accurately and the historical volatility of the underlying stock after the convertible bond issue which is suitable for pricing models and can’t be calculated accurately in China, the after volatility can be calculated directly and accurately.

Keywords:

Convertible bonds issue, pricing efficiency, the underlying stock volatility, the relationship,

References

Competing interests

The authors have no competing interests.

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Copyright

The authors have no competing interests.