Dear All,When I came to pricing a convertible bond I tried to accomplish that with a trinomial recombining tree.I am pricing the convertible bond by integrating the stock price in the trinomial recombining tree for the risk free interest rate.However, in each node after the second tree level I have received more than one possible value for the stock price, and the number of these values increases with the tree level. The latter gives rise to trinomial non-recombining trees for the stock price.I shall be grateful to you if you could give me any ideas or papers which could be of help when tackling the problem above.Thanks in advance.

Try Kevin B. Connolly....CiaoEgmont