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valuation of debt

SSaimon7y ago
Sir, can you explain me how black and scholes option pricing can be used to value debt (i understand the valuation of equity so you don't have to explain me that part)
John MoffatJohn MoffatTutor7y ago#1
It is not used to value debt - there are no debt options.
SSaimon7y ago#2
But if i invest in convertable debt instruments then can i use it???
John MoffatJohn MoffatTutor7y ago#3
Option pricing values options. There are share options, but there are not debt options.
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