Bond Rating and Bond Price in Indonesia Stock Exchange

DOI

10.2991/icebef-18.2019.171How to use a DOI?

Keywords

high rated bond; low rated bond; bond price

Abstract

Research on bonds is still limited compared to research on stocks in Indonesia. Bonds can be one type of asset that is quite interesting, because the bond is able to provide fixed income for investors who do not like the risk and can be used as an alternative investment in addition to stocks. This study aims to determine the difference between the price of bonds with high ratings and bonds with low ratings on the Indonesia Stock Exchange. Testing research hypothesis used independent t test independent sample, with tools SPSS application version 13.0. The results showed that there was a significant difference between the price of bonds with high rank (AAA) and the price of low-rated bonds (BBB). The average price of high-rated bonds (AAA) is higher than low-priced bond prices (BBB). The results of this study can provide empirical evidence of bond rating factors that affect bond prices, and for investors interested in investing in bonds, this study is expected to provide even input guidance to invest in bond instruments so as to choose an appropriate bond and provide benefits the maximum.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - I Gusti Ngurah Satria Wijaya
AU  - Putu Pande Yudiastra
PY  - 2019/05
DA  - 2019/05
TI  - Bond Rating and Bond Price in Indonesia Stock Exchange
BT  - Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)
PB  - Atlantis Press
SP  - 820
EP  - 823
SN  - 2352-5428
UR  - https://doi.org/10.2991/icebef-18.2019.171
DO  - 10.2991/icebef-18.2019.171
ID  - Wijaya2019/05
ER  -