- International Fees
International fees are typically 3.25 times the domestic tuition. Exact cost will be calculated upon completion of registration.
Course Overview
This course presents the foundation for fixed income investments, one of the largest and fastest growing segments of global financial markets. Students begin with an introduction to basic features such as the time value of money and the characteristics of fixed income securities and their associated risks. We examine yields and spreads and the effect of monetary policy on financial markets, since these are the primary building blocks for mastering the analysis, valuation, and management of fixed income securities.
Prerequisite(s)
Credits
4.0
- Retired
- This course has been retired and is no longer offered. Find other Flexible Learning courses that may interest you.
Learning Outcomes
At the end of this course the student will be able to:
- Assess the interest rate risk of a floating-rate security
- Assess why a floating-rate security’s price may differ from par value
- Compute and interpret the duration and dollar duration of a bond
- Construct the steps in the bond valuation process
- Select the types of bonds for which estimating the expected cash flows is difficult
- Assess the value of a bond and the change in value that is attributable to a change in the discount rate
- Evaluate the price volatility characteristics for option-free, callable, prepayable, and putable bonds when interest rates change
- Interpret positive convexity, negative convexity, and their relation to bond price and yield
- Compute and interpret the effective duration of a bond, given information about how the bond’s price will increase or decrease for given changes in interest rates
- Compute the approximate percentage price change for a bond, given the bond’s effective duration and a specified change in yield
Effective as of Fall 2011
Programs and courses are subject to change without notice.