Pricing Strategies of Coupon Bonds in Condition of COVID-19
These authors contributed equally.
- https://doi.org/10.2991/aebmr.k.220307.331How to use a DOI?
- COVID-19; bond market; pricing
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.
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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 -