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60 views

A question about pricing convertible bond with two different underlying assets

I have a question regarding the pricing of convertible bond. If I value the convertible bond with two different underlying assets, how can I incorporate two volatility and the correlation in the ...
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0answers
209 views

Question regarding the valuation of convertible bond

I would like to ask a question about the valuation of convertible bond using binomial tree. It is known that the CB can be valued as debt and equity component using risky and risk-free interest rate ...
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1answer
256 views

What is the difference between the methods (listed in content) in pricing convertible bond?

To price the convertible bond, one of the models is the bond plus equity option method. That is, the value of convertible bonds is evaluated by finding the value of the straight bond and the value of ...