How to determine the interest rate of corporate bonds?

Some companies will issue bonds in order to better safeguard the company, so how to determine the interest rate of corporate bonds? According to relevant reports, the bonds of companies and enterprises are determined according to the market conditions of enterprises at that time, and will also be affected by the financial situation such as credit rating. Let's talk about it in detail together. The interest rate of corporate bonds is determined according to the following standards: the interest rate of corporate bonds is determined by enterprises according to market conditions; In practice, the coupon annual interest rate of bonds is within the range of shibor benchmark interest rate (the arithmetic average of one-year shibor five working days before the first day of issuance) plus the basic spread. Bond issuers, lead underwriters and investors agree that the corporate bond interest rate is calculated on an annual basis, which is simple and profitable; The factors that affect the determination of corporate bond interest rate mainly include corporate bond credit rating, market capital and the trend of benchmark interest rate of financial institutions. Generally speaking, most corporate bonds are mainly interest-bearing bonds and are issued at a fair price. There will be a bidding process during the issuance process. General issuers will set a bid interest rate range according to market conditions, and then finally determine the coupon rate according to the subscription amount when bidding. There are many factors that affect coupon rate, such as the allocation demand of institutions in bidding, the environmental factors in the industry where enterprises are located, and the supply of market funds. As for the pledge or guarantee of bonds, credit rating is only one of the factors. In fact, the industry environment, pledge and guarantee of the enterprise are also reflected in the credit rating to some extent. However, because the rating results given by rating agencies are often questioned by the market, in the final analysis, it is a problem of insufficient credibility, and the rating is often of low reference value to many professional institutions. Based on the price theory and bond pricing model, this paper analyzes the market situation in China since the promulgation of the Measures for the Administration of Short-term Financing Bonds in May 2005, investigates short-term financing bonds from the perspectives of issuers, underwriters, investors and ratings, and refers to the historical evolution of American commercial paper market and its relationship with corporate financing and business cycle, and studies American commercial paper through empirical research, and puts forward the development direction of short-term financing bonds in China. With the rapid development of short-term financing bonds, it is the most urgent task to establish a credit risk pricing system based on financial data and some qualitative indicators. The pricing model in this paper consists of benchmark interest rate and risk compensation income with reference to international standards. Based on the above article, readers who have doubts about corporate bonds can know how to set the interest rate of corporate bonds. Issuing corporate bonds is not only to maintain the company's sustainable development, but also to expand the company's development scale and make the company legal and rational, so as to have a good bond environment.