(3 cr.) This course introduces students to the analytical processes associated with fixed income investing. The course bridges the gap between valuing bonds based on a yield to maturity and valuing bonds as a package of zero-coupon instruments. The concepts of theoretical spot rates, par rates of the on-the-run treasury securities, duration and convexity are discussed. A binomial model is explained and used to value bonds that have built-in options. Prerequisite: FIN 201; Every Year, Fall
This course is currently not being offered. Please try again next session.