Analysis of the Determinants of Corporate Bond Yields in the Basic Materials Sector Listed on the IDX in 2022-2025

Abstract

Corporate bond yield determines both the funding cost of issuers and the return required by investors, yet the evidence on its determinants remains inconsistent. This study analyzes the effects of bond rating, interest rate, and maturity on the yields of corporate bonds in the basic materials sector listed on the Indonesia Stock Exchange (IDX) from 2022 to 2025. A quantitative approach with secondary data was used. The population comprises 229 corporate bonds issued by 13 companies, and the sample consists of 109 bonds from 11 issuers selected through purposive sampling. Data were collected through documentation from the Indonesian Bond Market Directory (IBMD) and the BI Rate data of Bank Indonesia, and were analyzed using classical assumption tests, multiple linear regression, the t-test, the F-test, and the coefficient of determination in SPSS 22. The results show that bond rating has a negative and significant effect on bond yield (B = -0.006, Sig. = 0.000), while interest rate (B = 0.005, Sig. = 0.000) and maturity (B = 0.003, Sig. = 0.000) have positive and significant effects. Simultaneously, the three variables significantly affect bond yield (F = 23.058, Sig. = 0.000). The Adjusted R Square of 0.380 indicates that 38% of the variation in bond yield is explained by the model, while the remaining 62% is explained by other factors outside the model. These findings imply that issuers and investors should assess rating, benchmark interest rate, and maturity jointly when pricing and selecting corporate