Designing and Pricing Stock Income Associated Float Interest Rate Insurance Bonds

摘要

Bonds and stocks are all investment tools. Both have different income. Stocks have uncertainty yield. Yet, bonds have fixed income relatively. In respect that stocks income has the same stochastic change characteristic with the benchmark interest rate of float bonds. It is feasible that the benchmark of float interest rate bonds consider some stocks yield function. The paper designs a kind of float interest rate bonds correlation with stocks income. Use jump stochastic volatility interest rate term structure model price the bond. It can devote into insurance products design.