Assessing Factors Influencing Investors’ Preference Towards Municipal Bond in Bangladesh

Abstract

There has been much interest among the researchers to find out future prospective of municipal bond in Bangladesh. Especially as Bangladesh has become a developing country, the necessity of an efficient bond market has raised the concern. However, people are more interested in the money market. This paper has tried to find out the impact of possible internal and external factors, which can influence a municipal bond investment decision. With the help of secondary data, it has been found that fundamental factors such as yield to maturity can influence the investors’ decision whereas; external environment like the political condition of the country doesn’t play any impact here

Keywords: Municipal bond, External environment, Fundamental features, Investment decision. 

DOI: 10.7176/EJBM/11-27-13

Publication date:September 30^th 2019