Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Pricing Strategies of Coupon Bonds in Condition of COVID-19

Authors
Bo Cao1, *, , Shengyu Guo1, , Xiang Hou2, , Yingqi Wang3,
1Repton School, Dubai, United Arab Emirates
2Suzhou Foreign Language School, Suzhou, China
3Canada British Columbia International School, Hefei, China

These authors contributed equally.

*Corresponding author. Email: guanghua.ren@gecacademy.cn
Corresponding Author
Bo Cao
Available Online 26 March 2022.
DOI
https://doi.org/10.2991/aebmr.k.220307.331How to use a DOI?
Keywords
COVID-19; bond market; pricing
Abstract

This article is about how COVID-19 has affected the pricing of bonds and how is the YTM of a bondable impacts the bond when it is issued into the open market. Furthermore, this paper discussed the liquidity impact in terms of how old bonds behave compare of how old bonds behave compared to newly issued bonds and the correlations between the bond and the uncertainties within the market in multiple aspects. Additionally, the idea of credit risk to bonds and how it can have a significant impact on the pricing of industrial bonds. Subsequently, the expansion of credit risks in the fast growth of China’s bond market. Last but not least, our essay introduced the possible flaws within the bond model itself, and the massive impact it may have resulted in this particular period as the bonds are more likely to be called during this pandemic. Finally, it introduced a brief idea of the possibility of calling a callable bond in advance and the consequential impact which will result in the final return.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.331How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Bo Cao
AU  - Shengyu Guo
AU  - Xiang Hou
AU  - Yingqi Wang
PY  - 2022
DA  - 2022/03/26
TI  - Pricing Strategies of Coupon Bonds in Condition of COVID-19
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2020
EP  - 2024
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.331
DO  - https://doi.org/10.2991/aebmr.k.220307.331
ID  - Cao2022
ER  -