Abstract
This research was conducted at the companies which issuing corporate bonds in the Indonesia Stock Exchange in periode of 2016-2018. Total sample used are 64 corporate obligation, with purposive sampling method. This research used quantitave data. The analysis technique data used in this research is multiple linear regressions. Based on the results of the analysis found that interest rates have a significant positive effect on changes in bond prices. Bond coupons have a significant positive effect on bond prices. The age of the bonds does not have a significant effect on changes in bond prices. Bond ratings do not have a significant effect on changes in bond prices.
Highlights
IntroductionEvery company needs quite a lot of funds in developing its business for long-term financing
Hypothesis 1 states that the t-test results, the t value for interest rates is 4.230 and the significance level is smaller than 0.05, which means that interest rates have a significant effect on changes in bond prices
This is understandable because the issuers that issue the bonds provide a coupon rate that is relatively large compared to the market interest rate prevailing at the time of issuance
Summary
Every company needs quite a lot of funds in developing its business for long-term financing. The company will face problems in matters relating to funds, such as funding, using funds, and returning funds with a period that is indicated by the funder. Two alternative options can be taken, namely, funds that come from external and internal sources. Funds obtained from externals are companies that can issue licenses. Funds obtained internally are profits that are not given to the company or profits obtained (retained earnings) obtained from a specific period. Investors are faced with several choices in obtaining the return received, including investing in stocks and bonds. For investors who prefer fluctuating returns, stocks are the right choice. For investors who like fixed returns, bonds are the right choice to invest
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