Fixed Interest Investment

Code	School	Level	Credits	Semesters
BUSI4514	Nottingham University Business School	4	20	Spring Malaysia

Code: BUSI4514
School: Nottingham University Business School
Level: 4
Credits: 20
Semesters: Spring Malaysia

Summary

Institutional framework of international and UK bond markets. Bond yield and pricing models. Spot and forward interest rate determination. Measuring interest rate risk of bonds. Pricing of Interest rate derivatives. Role of credit rating agencies and the determination of credit ratings. Measuring credit risk. Bond market strategies.

Target Students

Core course for MSc Finance and Investment

Classes

One 1-hour tutorial each week for 11 weeks
One 3-hour lecture each week for 11 weeks

Assessment

25% Coursework 1: Group Project (5000 words)
75% Exam 1 (2-hour): 2-hour Examination

Educational Aims

To give students a sound and up-to-date understanding of fixed-interest securities and the management of fixed-interest portfolios. An understanding of the determination of bond prices, spot rates and forward rates. To develop students' ability to carry out relevant bond pricing and interest rate calculations with confidence. Valuation of interest rate forwards, futures and swaps. Evaluation of the theories of the term structure of interest rates. Measuring interest rate risk using measures such as duration and convexity. An understanding of the role of credit rating agencies and the factors that determine a credit rating. 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 credit risk modelling techniques.

Learning Outcomes

Knowledge and understanding
This module develops a knowledge and understanding of:

Finance - the sources, uses and management of finance

Intellectual skills
This module develops:

Being able to think critically and be creative: manage the creative processes in self and others; organise thoughts, analyse, synthesise and critically appraise. This includes the capability to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately
Being able to solve complex problems and make decisions: establish criteria, using appropriate decision-making techniques including identifying, formulating and solving business problems; and the ability to create, identify and evaluate options; the ability to implement and review decisions
Using information and knowledge effectively in order to abstract meaning from information and to share knowledge, including the use of quantitative skills

Professional practical skills
This module develops:

The ability to conduct research and enquiry into business and management issues either individually or as part of a team through research design, the collection and analysis of quantitative data, synthesis and reporting
Effective performance within team environments and the ability to recognise and utilise individuals' contributions in group processes and to negotiate and persuade or influence others; team selection, delegation, development and management. Leadership and performance management: selecting appropriate leadership style for different situations; setting objectives, motivating, monitoring performance, coaching and mentoring

Transferable (key) skills
This module develops:

Effective communication: networking, listening, oral and written communication of complex ideas and arguments, using a range of media, including the preparation of business reports
High personal effectiveness: critical self-awareness, self-reflection and self-management; time management; conflict resolution, displaying commercial acumen, the ability to continue to learn through reflection on practice and experience
Soft skills: understanding the needs of others and empathy towards them; sensitivity to diversity in people and in different situations

Conveners

Conveners unspecified.

View in Curriculum Catalogue

Last updated 09/01/2025.