DEBT SECURITIES

FIN5DBS

2015

Credit points: 15

Subject outline

In this subject, students will develop a working knowledge of the characteristics of fixed income securities, the operation of debt markets and the mechanics of trading these securities. Students will also develop a thorough knowledge of the measurement of the yield of fixed interest securities, the various relevant yield spread measures and the term structure of interest rates. This will then be used in the valuation of fixed interest securities, including the valuation of bonds with embedded options, structured securities and international bonds. Specific attention will also be given to credit analysis and risk assessment and the measurement of interest rate risk.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorMichael Li

Available to Study Abroad StudentsNo

Subject year levelYear Level 5 - Masters

Exchange StudentsNo

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsFixed income analysisPrescribedFabozzi, F.2ND EDN., N.J., JOHN WILEY, 2007

Graduate capabilities & intended learning outcomes

01. Define the concepts learned from the different topics of the subject. Recognize and identify the related problems.

Activities:
Lecutres and tutorials
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Quantitative Literacy)
Literacies and Communication Skills (Writing,Quantitative Literacy)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

02. Compute and explaine the solutions to the sets of problems that are associated with the concepts learned.

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Quantitative Literacy)
Literacies and Communication Skills (Writing,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

03. Apply the knowledge and technical skils to a real world case. Demonstrate the understanding of the relevant topics

Activities:
Lectures and the case study
Related graduate capabilities and elements:
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Literacies and Communication Skills (Writing,Quantitative Literacy)
Literacies and Communication Skills (Writing,Quantitative Literacy)

04. Analyse the real world data and compare and contrast different scenarios in order to provide an appropriate solution

Activities:
Case study
Related graduate capabilities and elements:
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Literacies and Communication Skills (Writing,Quantitative Literacy)
Literacies and Communication Skills (Writing,Quantitative Literacy)

05. Develop and prepare a report on a real world case. Manage and plan the progress of the report.

Activities:
Case study
Related graduate capabilities and elements:
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Literacies and Communication Skills (Writing,Quantitative Literacy)
Literacies and Communication Skills (Writing,Quantitative Literacy)

06. Evaluate and predict the relevant outcomes. Justify and support the analysis using real world data.

Activities:
Case study
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Quantitative Literacy)
Literacies and Communication Skills (Writing,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

Subject options

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Start date between: and    Key dates

Melbourne, 2015, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorMichael Li

Class requirements

Lecture Week: 10 - 22
One 2.0 hours lecture other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Tutorial Week: 10 - 22
One 1.0 hours tutorial other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
five 20-30 minute tutorial assessment tasksBoth individual and group tutorial assessment tasks may be undertaken20 01, 02
one 3-hour final examinationHurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject60 01, 02
one 4,000-word group assignment1,000-words per student20 03, 04, 05, 06

Melbourne, 2015, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorMichael Li

Class requirements

Lecture Week: 31 - 43
One 2.0 hours lecture other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Tutorial Week: 31 - 43
One 1.0 hours tutorial other recurrence on weekdays at night from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
five 20-30 minute tutorial assessment tasksBoth individual and group tutorial assessment tasks may be undertaken20 01, 02
one 3-hour final examinationHurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject60 01, 02
one 4,000-word group assignment1,000-words per student20 03, 04, 05, 06