Course - Interest Income Securities - BFIN4012
Interest Income Securities
This course is no longer taught and is only available for examination.
About
About the course
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
Knowledge:
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 various interest income securities, and an assessment of the risks associated with each security. Moreover, the use of various derivatives to manage the risks will also be discussed.
Skills:
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".
Specific conditions
Admission to a programme of study is required:
Accounting and Auditing (MRR)
Economics (MSØK)
Economics (MSØK/5)
Economics and Business Administration (MSIVØK5)
Economics and Business Administration (ØAMSC)
Entrepreneurship (MENTRE)
Entrepreneurship (MSENTRE)
Financial Economics (MFINØK)
Industrial Economics and Technology Management (MTIØT)
International Business and Marketing (860MIB)
Recommended previous knowledge
Either a bachelor degree with finance major or an enrollment in a master program with finance as a major or a minor is recommended.
Required previous knowledge
none
Course materials
The reading list will be available at the start of the semester.
Subject areas
- Economics and Administration