MGMT 426 Fixed Income Securities

Junior standing and ECMG 303 or permission of the instructor. This course covers the valuation and application of a wide variety of fixed income securities. Fixed income securities are financial claims including pure discount bonds, coupon bonds such as Treasury notes and corporate bonds, floating rate notes, callable bonds, among many others, issued by public or private entities. In this course, we focus on yield curve construction, duration and convexity, and formal term structure models. The goal is to introduce you to at least one equilibrium model and one no-arbitrage model, and to analytical tools used in interest rate modeling and risk management. This course combines theory with practical examples demonstrating the complications that arise when applying theory to realistic situations.