Effect of Inflation Rate on Aggregate Bond Performance in Nairobi Securities Exchange in Kenya

Nancy W Kariuki, Dr. Assumptah Kagiri

Abstract: The study examined the effects of inflation rate on aggregate bond performance in Nairobi securities exchange in Kenya. The study adopted a descriptive research design. The population being all age of the bond in Kenya. The population also comprised of all finance manager of corporations with bond issued in Kenya. The sample size entailed bond trading in NSE between 2011 to 2015 with a tenor of 1 to 5years. The primary data was collected through questionnaires to the staff in these listed companies. Secondary data was obtained from company financials statements, CMA, NSE, KNBS and CBK data. Data was analysed using multiple linear regression model and the results and findings shows that the macroeconomic indicators have effects on aggregated bond performance. Inflation rate was found to positively affect the aggregate bond performance in Nairobi Securities Exchange in Kenya. The study therefore concluded that inflation rates significantly affect the aggregate bond performance. This will then have a significant impact on the bond performance traded in NSE thusand eventually improve economic growth. Keywords: Inflation Rate, Aggregate Bond, Performance, Securities Exchange. Title: Effect of Inflation Rate on Aggregate Bond Performance in Nairobi Securities Exchange in Kenya Author: Nancy W Kariuki, Dr. Assumptah Kagiri International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Research Publish Journals

Vol. 4, Issue 2, October 2016 – March 2017

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Effect of Inflation Rate on Aggregate Bond Performance in Nairobi Securities Exchange in Kenya by Nancy W Kariuki, Dr. Assumptah Kagiri