FINC 641 Fixed Income Securities (4)

The course aims to provide a comprehensive coverage on fixed income securities by covering the theoretical, empirical, and structural aspects of fixed income securities and their derivatives, and enables the students to apply these concepts and tools for investing, hedging, arbitraging, and interest rate risk management. The course is designed to provide a broad coverage on the fundamental principles of investing in fixed income securities. It covers the topical areas of: (i) the institutions, instruments, and operations of fixed income securities markets; (ii) the analysis and valuation of fixed income securities; (iii) the analysis of interest rates and term structure; (iv) interest rate related derivative instruments and how to use these contracts to reduce risk exposure and enhance the yields of fixed income portfolios. The course will examine how the bond market is affected by macroeconomic variables such as GDP growth, interest rates, and taxes. Class lectures will focus on both the theoretical and applied aspects of these securities. Prerequisite(s): Full Time - FINC 614 Corporate Finance (4). Fully Employed - FINC 655 Financial Management of the Firm (4).

Grading Basis: Graded