Design of Optimal Strategy for Convertible Bond Issuance

摘要：

Considering the factors related to the convertible bond issuance,a model is developed to express the relationship between conversion rate and asset variation of the firm issuing the bond with the maximization of the firms gross assets taken as the objective.The functional calculus is introduced to determine the optimal conversion rate so as to optimize the issuance strategy of convertible bonds,thus offering a new way for the design of original indenture for convertible bonds.Through the case study,a conclusion is drawn that the result of such an analysis is practically in agreement with the issuance indenture for convertible bonds and that effectiveness of the proposed method is therefore verified.

关键词： convertible bond original indenture optimal strategy generalized functions calculus of variation Euler equation

作者: Zhufang WANG Shengjun ZHONG Zhiqiang LUO

作者单位: Management School,Shenyang University of Technology,Shenyang 110023,China School of Material and Metallurgy,Northeastern University,Shenyang 110006,China

会议类型: 国际会议

会议名称: The 2008 International Conference on Business Intelligence and Financial Engineering(BIFE 2008)(商业智能和金融工程国际会议)

会议地点: 长沙

会议语种:英文

页码: 619-624

在线出版日期: 2008-10-28（万方平台首次上网日期，不代表论文的发表时间）