The tag has no wiki summary.

learn more… | top users | synonyms

3
votes
0answers
35 views

How is the redemption right on delisting of underlying shares held by holder in the convertible bond valued?

As title, If there is no delisting constraint, then I can treat the redemption right as the put right on the convertible bond. If there is redemption right on delisting, what is the conventional ...
2
votes
0answers
14 views

How can dividend protection be considered in the binomial model in pricing the convertible bond?

If the convertible bond has dividend-protection, how can we cater it in the binomial model? If there is dividend protection at or above 1%, can we impose input of dividend yield of 1% in the ...
1
vote
0answers
30 views

Discount rate, convertible debt and the effect of time

The way I understand it is that there are three main parameters to a convertible debt investment. An investment amount A discount rate A trigger event Now under most of the examples I have seen, ...
0
votes
0answers
161 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 ...