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New General Mathematics Study Findings Have Been Reported by Researchers at South China University of Technology (Pricing Convertible Bonds with...

July 1, 2014



New General Mathematics Study Findings Have Been Reported by Researchers at South China University of Technology (Pricing Convertible Bonds with Credit Risk under Regime Switching and Numerical Solutions)

By a News Reporter-Staff News Editor at Journal of Mathematics -- Investigators publish new report on General Mathematics. According to news reporting from Guangdong, People's Republic of China, by VerticalNews journalists, research stated, "This paper discusses the convertible bonds pricing problem with regime switching and credit risk in the convertible bond market. We derive a Black-Scholes-type partial differential equation of convertible bonds and propose a convertible bond pricing model with boundary conditions."

The news correspondents obtained a quote from the research from the South China University of Technology, "We explore the impact of dilution effect and debt leverage on the value of the convertible bond and also give an adjustment method. Furthermore, we present two numerical solutions for the convertible bond pricing model and prove their consistency."

According to the news reporters, the research concluded: "Finally, the pricing results by comparing the finite difference method with the trinomial tree show that the strength of the effect of regime switching on the convertible bond depends on the generator matrix or the regime switching strength."

For more information on this research see: Pricing Convertible Bonds with Credit Risk under Regime Switching and Numerical Solutions. Mathematical Problems in Engineering, 2014;():1-13. Mathematical Problems in Engineering can be contacted at: Hindawi Publishing Corporation, 410 Park Avenue, 15TH Floor, #287 Pmb, New York, NY 10022, USA. (Hindawi Publishing - www.hindawi.com; Mathematical Problems in Engineering - www.hindawi.com/journals/mpe/)

Our news journalists report that additional information may be obtained by contacting W.G. Zhang, S China Univ Technol, Sch Business Adm, Guangzhou 510640, Guangdong, People's Republic of China.

Keywords for this news article include: Asia, Guangdong, General Mathematics, People's Republic of China

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Journal of Mathematics


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