The final value coefficient of compound interest and the present value coefficient of annuity are calculated by using the actual interest rate.
Transaction price of buyers and sellers-fair value of bond part = fair value of equity part.
The fair value of the liability part = the present value of bond face value compound interest+the present value of negative interest rate annuity.
For example, convertible corporate bonds have a face value of 50 million yuan, coupon rate 5%, real interest rate of 6% and a term of 5 years.
Fair value of liabilities =5000* compound interest present value coefficient (that is, 5000 divided by the fifth power of (1+6%) +5000*5%* annuity present value coefficient (generally tell you, you can also look it up in the annuity coefficient table).
Extended data:
Under any of the following three circumstances, the fair value of the assets exchanged in or out shall be deemed to be reliably measurable:
1. If the assets exchanged in or out exist in an active market, the fair value shall be determined based on the market price.
2. There is no active market for the assets exchanged in or out, but there is an active market for the same or similar assets. The fair value shall be determined according to the market price of the same or similar assets.
3. Where there is no comparable trading market for the same or similar assets among the assets exchanged in or out, the fair value shall be determined by using valuation techniques. When using valuation technology to determine fair value, it is required that the range of variation of the fair value estimate determined by this valuation technology is very small, or all kinds of probabilities used to determine the fair value estimate can be reasonably determined within the range of variation of the fair value estimate.
Baidu Encyclopedia-Fair Value