Correlational studies of bond characteristics on bond returns: a case study in publicly listed companies in the banking industries
Bond is one type of financial securities which company and government can acquired capital to finance its investment. Moreover, investors also used a bond as long term investment and receive fixed regular interest income. They viewed the bond as less risk investments than the stock investment. This research examines the degree of correlation between bond characteristics and value of the bond return. The bond returns can be distinguished into short term and long term. Whereas the short term bond return is explained by the coupon value, and the longm term bond return is explained by the market capitalization to liability. The result is expected to shown which bond characteristics appears to be the most significant variable to affect the volatility in the coupon value and the market capitalization to liability.
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