The Analysis of Corporate Bond Valuation under an Infinite Dimensional Compound Poisson Framework

This paper analyzes the firm bond valuation and credit spread with an endogenous model for the pure default and callable default corporate bond. Regarding the stochastic instantaneous forward rates and the firm value as an infinite dimensional Poisson process, we provide some analytical results for...

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Main Author: Sheng Fan
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Abstract and Applied Analysis
Online Access:http://dx.doi.org/10.1155/2014/282185
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author Sheng Fan
author_facet Sheng Fan
author_sort Sheng Fan
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description This paper analyzes the firm bond valuation and credit spread with an endogenous model for the pure default and callable default corporate bond. Regarding the stochastic instantaneous forward rates and the firm value as an infinite dimensional Poisson process, we provide some analytical results for the embedded American options and firm bond valuations.
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publishDate 2014-01-01
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spelling doaj-art-2d34db96e25e443aacf8e02c20e1ffce2025-08-20T02:38:48ZengWileyAbstract and Applied Analysis1085-33751687-04092014-01-01201410.1155/2014/282185282185The Analysis of Corporate Bond Valuation under an Infinite Dimensional Compound Poisson FrameworkSheng Fan0School of Economic Mathematics, Southwestern University of Finance and Economics, Chengdu 611130, ChinaThis paper analyzes the firm bond valuation and credit spread with an endogenous model for the pure default and callable default corporate bond. Regarding the stochastic instantaneous forward rates and the firm value as an infinite dimensional Poisson process, we provide some analytical results for the embedded American options and firm bond valuations.http://dx.doi.org/10.1155/2014/282185
spellingShingle Sheng Fan
The Analysis of Corporate Bond Valuation under an Infinite Dimensional Compound Poisson Framework
Abstract and Applied Analysis
title The Analysis of Corporate Bond Valuation under an Infinite Dimensional Compound Poisson Framework
title_full The Analysis of Corporate Bond Valuation under an Infinite Dimensional Compound Poisson Framework
title_fullStr The Analysis of Corporate Bond Valuation under an Infinite Dimensional Compound Poisson Framework
title_full_unstemmed The Analysis of Corporate Bond Valuation under an Infinite Dimensional Compound Poisson Framework
title_short The Analysis of Corporate Bond Valuation under an Infinite Dimensional Compound Poisson Framework
title_sort analysis of corporate bond valuation under an infinite dimensional compound poisson framework
url http://dx.doi.org/10.1155/2014/282185
work_keys_str_mv AT shengfan theanalysisofcorporatebondvaluationunderaninfinitedimensionalcompoundpoissonframework
AT shengfan analysisofcorporatebondvaluationunderaninfinitedimensionalcompoundpoissonframework