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Fixed Income (FNCE90015)

Graduate courseworkPoints: 6.25On Campus (Parkville)

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Year of offer2018
Subject levelGraduate coursework
Subject codeFNCE90015
FeesSubject EFTSL, Level, Discipline & Census Date

This subject covers capital markets and money markets for fixed income securities. Topics include: fixed income analysis; capital and money market instruments; forwards and futures of interest rate securities; interest rate volatility; the term structure of interest rates; interest rate risk; inflation; swaps; callable bonds; convertible bonds; securitised products; and risk management techniques.

Intended learning outcomes

On successful completion of this subject students should be able to:

  • Describe the structure, purpose and operation of fixed income markets and the nature of instruments traded in these markets;
  • Describe the motivation and trading behaviour of market participants in fixed income markets;
  • Value instruments traded in money markets and bond markets;
  • Explain factors affecting fixed income security prices;
  • Explain the information content of the term structure of interest rates and calculate the zero-coupon and par yield curves;
  • Explain the impact of inflation, liquidity and segmentation on the term structure of interest rates;
  • Calculate and implement interest rate risk measures;
  • Evaluate interest rate risk management techniques;
  • Devise trading strategies in fixed income markets.

Generic skills

On successful completion of this subject, students should have improved the following generic skills:

  • Oral communication
  • Written communication
  • Collaborative learning
  • Problem solving
  • Team work
  • Statistical reasoning
  • Application of theory to practice
  • Interpretation and analysis
  • Critical thinking
  • Synthesis of data and other information
  • Evaluation of data and other information
  • Using computer software
  • Accessing data and other information from a range of sources

Last updated: 11 January 2018