DEBT SECURITIES

FIN5DBS

2021

Credit points: 15

Subject outline

In this subject, you will develop, through lessons in our Financial Trading Room, 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/Exchange StudentsYes

Subject year levelYear Level 5 - Masters

Available as ElectiveYes

Learning ActivitiesLectures and tutorials

Capstone subjectNo

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Quota Management StrategyN/A

Quota-conditions or rulesN/A

Special conditionsN/A

Minimum credit point requirementN/A

Assumed knowledgeN/A

Readings

Fixed income analysis

Resource TypePrescribed

Resource RequirementN/A

AuthorBarbara S. Petitt, et, al.

Year2007

Edition/Volume3RD EDN

PublisherN.J., JOHN WILEY

ISBN9781118999509

Chapter/article titleN/A

Chapter/issueN/A

URLN/A

Other descriptionN/A

Source locationN/A

Career Ready

Career-focusedNo

Work-based learningNo

Self sourced or Uni sourcedN/A

Entire subject or partial subjectN/A

Total hours/days requiredN/A

Location of WBL activity (region)N/A

WBL addtional requirementsN/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

Intended Learning Outcomes

01. Compare and contrast the characteristics of various types of fixed income securities and markets;
02. Explain in detail the measurement of the yield of fixed income securities and the term structure of interest rates;
03. Explain the financial and economic theory on which the valuation of fixed income securities is founded;
04. Value fixed income securities and measure interest rate risk;
05. Apply economic and financial theory to credit analysis for a pubic listed company.

Subject options

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Start date between: and    Key dates

Melbourne (Bundoora), 2021, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorMichael Li

Class requirements

LectureWeek: 31 - 43
One 2.00 h lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

TutorialWeek: 32 - 43
One 1.00 h tutorial per week on weekdays at night from week 32 to week 43 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

One hour formative examination Equivalent to 1000 words

N/AOther written examIndividualNo10 SILO1, SILO2, SILO3, SILO4

Two hour final examination Equivalent to 2000 words

N/ACentral examIndividualNo50 SILO1, SILO2, SILO3, SILO4

Individual assignment Equivalent to 2000 words

N/AAssignmentIndividualNo30 SILO5

Online and/or in-class assessment tasks Equivalent to 500 words

N/AOtherIndividualNo10 SILO1, SILO3