BFIN4012 - Interest Income Securities


Examination arrangement

Examination arrangement: School exam
Grade: Letters

Evaluation Weighting Duration Grade deviation Examination aids
School exam 100/100 4 hours D

Course content

The course aims to explore various interest income securities and how they can be of use to investors and corporations. It covers valuation of different interest income securities and using the securities for hedging purposes. Topics covered include: bonds with embedded options, mortgage-backed securities, repos, interest rate derivatives, interest rate risk, yield curve risk, and credit risk.

Learning outcome


The course will provide an understanding of various characteristics of interest income securities including bonds with embedded options and mortgage-backed bonds. It will also provide an appreciation of various valuation approaches available to value the securities, and an assessment of the risks associated with such securities. Moreover, the use of various derivatives to manage the risks will also be discussed.


Students are expected to be able to: understand the approaches available to value different types of interest income securities, estimate the value of various types of interest income securities, appreciate the risks associated with such securities, and use the securities for hedging purposes.

Learning methods and activities

Lectures and assignment

Compulsory assignments

  • One individual assignment

Further on evaluation

Supporting material allowed on exams: Approved calculator regarding NTNUs support material code B-D "specific basic calculator". Other calculators that are allowed in the course are: Casio FC-100V and Texas Instruments - BAII Plus. Admission to study programme required, see "special conditions".

Course materials

The reading list will be available at the start of the semester.

More on the course



Version: A
Credits:  7.5 SP
Study level: Second degree level


Term no.: 1
Teaching semester:  AUTUMN 2021

Language of instruction: English

Location: Trondheim

Subject area(s)
  • Economics and Administration
Contact information
Course coordinator:

Department with academic responsibility
NTNU Business School


Examination arrangement: School exam

Term Status code Evaluation Weighting Examination aids Date Time Digital exam Room *
Autumn ORD School exam 100/100 D INSPERA
Room Building Number of candidates
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

More on examinations at NTNU