Debt Securities

Catalog description

This course analyzes debt instruments and their markets. The course begins with a discussion of fixed and floating rate bonds and their pricing. The course then addresses the risks of these securities and discusses concepts such as duration and convexity. Risk management strategies such as immunization and hedging with futures are examined. The term structure of interest rates as embodied by spot, coupon and forward yield curves are discussed within the context of traditional bond yield calculations and the price-yield relationship.Prerequisites: FIN 9771 and FIN 9773, or equivalents.