A limited ( and volatile) capacity of traditional reinsurance and retrocession markets can not satisfy the need for diversifying an increasing risk of extreme losses caused by value concentration and climate change. Against this background,an alternative risk transfer ( ART) intends to provide additional ( re) insurance coverage by transferring insurance risks to the capital market,which offers considerably higher capacities and can thus help satisfy the demand. One of the most prominent ART instruments is catastrophe bonds. Research on pricing of catastrophe risk bonds is not only of great practical significance and urgency,but also has an important academic relevance. Firstly,based on the risk-neutral measure approach,this paper derives a pricing formula of catastrophe bonds in a Longstaff model of the term structure with the hypothesis that the aggregate loss process follows a compound Poisson process. Furthermore,this paper estimates and calibrates the parameters of the pricing model using the loss data caused by storm surge disaster in Guangdong province coastal area with January 1989 - December 2015. As no closed-form solution can be obtained,this paper adopts a fast Fourier transform algorithm to find the numerical solutions for the price of catastrophe risk bonds. Finally,a numerical experiment is conducted to verify the feasibility of this pricing model. The objective of this paper is to provide a theoretical base and technical assistance for issuing China's catastrophe bonds in the future.