| Bonds are an interesting financial instrument both for investors in capital market and for issuers in funding their company. Bonds also help investors to reduce the risks of their portfolios because their price do not easily fluctuate and have low correlations with stock price. For investors, understanding of bond price is important in order to get optimal capital gain or for reducing portfolios risk. Based on research by Elton, Gruber, Agrawal, and Mann (2004), this thesis intend to investigate some factors that affecting corporate bonds price such as coupon and maturity. For analyzing those factors, author has applied multiple linear regression using one year data for 2006. The output from the regression showed that coupon and maturity are significant at affecting corporate bonds price yet there are many others significant factors affecting them. Hence, investor need to examine the other factors that can affect corporate bonds price. |