Valuing Convertible Bonds Based on LSRQM Method

Table 1

Short-term interest rate models.

Model	𝑎0	𝑏0	𝑐(𝑡)	𝑑(𝑡)
Vasicek	−𝑎0	𝑏0	0	𝜎^2
Cox-Ingersoll-Ross	−𝑎0	𝑏0	𝜎^2	0
Ho-Lee	0	𝑏0	0	𝜎^2
Hull-White 1	−𝑎0	𝑏0	0	𝜎(𝑡)^2
Hull-White 2	−𝑎0	𝑏0	𝜎(𝑡)^2	0