Stochastic Model for Pricing Normal Bonds when Maturity Periods Cross Over to Pandemic Period
- 1 Department of Mathematics, University of Eswatini, Swaziland
- 2 Sales and Audit, Eswatini Coca-Cola Beverages Company, Swaziland
In this study, Ito form for normal bonds trading where maturity periods cross over to COVID-19 pandemic period is presented. It is shown that normal bonds in this period experience path reversals respective to their canonical paths. The criterion used in arriving at this striking result is also presented. As a key recommendation, it is necessary that bondholders enact flexible pricing laws that strengthen the issuer to continue trading in the present COVID-19 pandemic time through the reverse path identified in this study.
Copyright: © 2023 Sulaiman Sani and Siphelele Lushaba. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
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