Nottingham University Business School
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Fixed Interest Investment

Please note that the following information may be subject to change.

Module Convenor:  Amrit Judge

Module Content:
Institutional framework of international and UK bond markets. Bond yield and pricing models. Interest rate determination. Bond market strategies and portfolio decision making.

Module Aims:
To give students a sound and up-to-date understanding of the basics of fixed-interest investment and the management of fixed-interest portfolios. To develop students' ability to carry out relevant calculations with confidence on a spreadsheet.
To inculcate an awareness of the richness of the subject, going beyond traditional bond theory to cover fixed-interest derivatives, value-at-risk, and recent modelling techniques.
Introduction and overview; introduction to fixed interest instruments. Bonds and bond arithmetic. Measuring interest rate risk. Floaters and swaps. Interest-rate forwards and futures. Interest-rate options. Credit risk. Modelling interest rates and the prices of fixed-interest securities. Managing interest rate risk.

Module Assessment:
2 Hour Examination (75%); Group Project (5,000 words) (25%)

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