FN 395 Fixed Income Securities
This course provides an understanding of the nature of the fixed income securities and financial instruments including discount bonds, coupon bonds, forwards and. The course will focus on yield curve construction, duration and convexity and formal term structure models. In addition, the course will cover options and derivatives such as options of fixed-income securities and interest rate, interest rate swaps including caps, and floors. The goal of the course is to learn how investors measure and manage risk on a disaggregated and aggregated basis. The course will cover interest rate risk, and other risks in fixed income securities such as credit risk, illiquidity risk, and the risks resulting from securitization.