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The Influence Of Bank Indonesia Interest Rate, Coupon Bonds, Maturity Time Of Bonds, And Net Profit Margin On Bonds Prices
[Full Text]
AUTHOR(S)
Hari Gursida, Abdul Rahmat
KEYWORDS
BI Rate, coupon bond, bond maturity, net profit margin and bond price.
ABSTRACT
This study aims to examine the effect of Bank Indonesia interest rates, bond coupons, bond maturity, and issuer net profit margin on the bonds price. It was conducted in the Indonesia Bond Pricing Agency (IBPA) during a period cover 2012-2016. The method used in this research is multiple linear regression analysis. The results of partial testing showed that Bank Indonesia interest rates have a negative influence on bond prices; The Bank Indonesia (BI) rate has a significant effect on bond prices; Bond coupons have a positive influence on bond prices. Bond coupons have a significant effect on Bond Prices. The finding show that the time maturity of Bond affects negatively the bond prices, but bond coupons do not have a significant effect on Bond Prices, and Net Profit Margin has a positive influence on bond prices. Profit Margin does not have a significant effect on bond prices. The finding of the study show that in terms of parameter marks, the influence of the independent variable is in accordance with the hypothesis, and it turns out that the BI Rate and coupon bonds have relatively more dominant influences
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