fin5dbs debt securities
DEBT SECURITIES
FIN5DBS
2019
Credit points: 15
Subject outline
In this subject, you will develop a working knowledge of the characteristics of fixed income securities, the operation of debt markets and the mechanics of trading these securities. You 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 StudentsYes
Subject year levelYear Level 5 - Masters
Exchange StudentsYes
Subject particulars
Subject rules
PrerequisitesN/A
Co-requisitesN/A
Incompatible subjectsN/A
Equivalent subjectsN/A
Special conditionsN/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Fixed income analysis | Prescribed | Barbara S. Petitt, et, al. | 3RD EDN., N.J., JOHN WILEY, 2007 |
Graduate capabilities & intended learning outcomes
01. Compare and contrast the characteristics of various types of fixed income securities and markets;
- 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)
- 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. Explain in detail the measurement of the yield of fixed income securities and the term structure of interest rates;
- 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)
- 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. Explain the financial and economic theory on which the valuation of fixed income securities is founded;
- 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)
- 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)
04. Value fixed income securities and measure interest rate risk;
- 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)
- 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)
05. Apply economic and financial theory to credit analysis for a pubic listed company.
- 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)
- 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)
- 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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Melbourne, 2019, Semester 2, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorMichael Li
Class requirements
LectureWeek: 31 - 43
One 2.0 hours lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
TutorialWeek: 32 - 43
One 1.0 hours tutorial per week on weekdays at night from week 32 to week 43 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| four 30-35 minute tutorial assessment tasks | This is an individual assessment | 20 | 01, 02, 03, 04 |
| one 3-hour final examination | MCQ questions plus problem solving questions | 60 | 01, 02, 03, 04 |
| one 5,000-word group assignment | 1,000-words per student, a group assignment up to five students per group | 20 | 05 |