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Abstract:
Discussion on bonds as a source of state development financing, including its effect on the size of the debt service to country risk remains an interesting topic for further study. The purpose of this study is to examine various variables that would affect the price movement of Indonesian government bonds. Some of the variables include coupon, maturity, yield, and liquidity. The analysis was conducted on Indonesian government bond data for the period of January 2015 - June 2016.Data sources were obtained from Indonesian Bond Market Directory 2016-2017.Sampling was done using purposive sampling technique and resulted in 40 samples of FR series bonds. The result of analysis shows that coupon rate and yield have significant positive effect to government bond price; maturity has significant negative effect to government bond price, while liquidity has significant effect to government bond price. For further research, research can be directed to the topic of comparing predictors of government bond prices among developing countries, or the topic of comparison of bond pricing predictors among developing countries with developed countries. In addition, research can be done both by increasing the number of bond price predictors and/or the number of observation periods.
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