PT INDOSAT: PRICING OF BONDS

Early in 2010, the Finance Director of PT Indosat Tbk, considered an empirical investigation of several theoretical pricing restrictions that should be satisfied by nine bonds of PT Indosat TbK. In particular, he wanted to investigate pricing volatility for bonds that were issued in 2002, 2003, 2005, 2007, 2008 and 2009.

Refinancing could be in dollar-denominated bonds, rupiah-denominated bonds, syaria-denominated bonds and bank loans. The market appreciated bonds issued by companies with AA+ Ratings. Comparing current macroeconomic circumstances to inflation and volatile interest rate, newly-issued bonds face challenges such as price, yield, and bond maturity period.