I have a comment about the two method after running the algorithm. I doubt that the intrinsic value may not be appropriate in pricing the convertible bond (conversion option). Here is my claim,In the past few days, I tried to use the binomial tree to price the conversion option based on intrinsic value approach and using the decision rule max(min(call,roll),conv), I found that the value of conversion option is smaller than that based on total value approach. Hence, the CB valued is smaller. I guess the reason is that if the option is exercised, only the intrinsic value is discounted but in fact intrinsic value is not only the part to be discounted by risk-free rate. When the conversion option is exercised, the whole CB should be discounted by risk-free rate. Hence the option valued is smaller and using intrinsic value approach to value the CB is not correct, is my claim right?Could anyone justify my claim? Thanks.