The integrated model for pricing corporate bonds and stocks ; Development and its application to corporate finance

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We present a model for pricing corporate bonds and stocks in a unified framework. By using our model, we can integrate the information of bond and stock market in the unified pricing model and we can then present finer prices of bonds and stocks compared to the ones by using separated models. For the simplicity, many papers assume that the bonds don't have maturity, however it is not unusual in the market, and we then analyzed its limitations to the application for finance problems. We also present the pricing model for the corporate securities considering the debt renegotiation between the stock holders and bond holders.