Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
Provides students with a comprehensive understanding of the corporate treasury management function. Covers bond mathematics and the concepts of duration and convexity. Valuation of embedded options, swaps, credit default swaps, collateralised debt obligations. Treasury risk management. The credit rating process.
Course requirements
Prerequisites
You'll need to complete the following courses before enrolling in this one:
FINM1415 or 2401 or 2411
Restrictions
Restricted to students enrolled in the BAdvFinEcon(Hons) and BCom(Hons) programs
Course contact
Course staff
Lecturer
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Please note: Teaching staff do not have access to the timetabling system to help with class allocation. Therefore, should you need help with your timetable and/or allocation of classes, please ensure you email business.mytimetable@uq.edu.au from your UQ student email account with the following details:
- Full Name
- Student ID
- Course Code
Aims and outcomes
This course aims to provide an in-depth understanding of fixed income security markets and their analyses. These securities include treasury securities, municipal bonds, corporate bonds and international bonds, and structured debt securities. Their risk-return characteristics will be explained in terms of price-yield relationship, yield and return measures, and price volatility measures. Various techniques for the valuation, trading, and risk control of these securities will be illustrated in details in association with yield curve analysis.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Understand the fundamentals of fixed income in the context of investment and trading
LO2.
Analyse the risk and returns of a wide variety of fixed income products
LO3.
Understand how fixed income products relate to other structured products
LO4.
Work collaboratively and efficiently in teams to complete tasks related to fixed income product
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Tutorial/ Problem Set |
Weekly RiPPLe Activities
|
15% Best 10 of 12 |
2/08/2024 12:00 pm 9/08/2024 12:00 pm 16/08/2024 12:00 pm 23/08/2024 12:00 pm 30/08/2024 12:00 pm 6/09/2024 12:00 pm 13/09/2024 12:00 pm 20/09/2024 12:00 pm 4/10/2024 12:00 pm 11/10/2024 12:00 pm 18/10/2024 12:00 pm 25/10/2024 12:00 pm |
| Paper/ Report/ Annotation |
Credit Rating Report
|
25% |
4/10/2024 3:00 pm |
| Examination |
Final Exam
|
60% |
End of Semester Exam Period 2/11/2024 - 16/11/2024 |
Assessment details
Weekly RiPPLe Activities
- Online
- Mode
- Written
- Category
- Tutorial/ Problem Set
- Weight
- 15% Best 10 of 12
- Due date
2/08/2024 12:00 pm
9/08/2024 12:00 pm
16/08/2024 12:00 pm
23/08/2024 12:00 pm
30/08/2024 12:00 pm
6/09/2024 12:00 pm
13/09/2024 12:00 pm
20/09/2024 12:00 pm
4/10/2024 12:00 pm
11/10/2024 12:00 pm
18/10/2024 12:00 pm
25/10/2024 12:00 pm
- Learning outcomes
- L01, L02, L03
Task description
Weekly activities run through RiPPLe are designed to test student understanding of the weekly contents. The assessable tasks will consist of a combination of learning resource creation, moderation and practice. Submissions will be due at the end of each teaching week beginning in Week 2 and ending Week 13. The best 10 of 12 submissions will be used to calculate a student's mark, with each worth 1.5% of the course mark. Detailed task specifications will be announced and placed on Blackboard at the required time.
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI) or Machine Translation (MT). Students are advised that the use of AI or MT technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
The submission will be through the RiPPLe application in Blackboard.
Deferral or extension
You cannot defer or apply for an extension for this assessment.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Credit Rating Report
- Team or group-based
- Mode
- Written
- Category
- Paper/ Report/ Annotation
- Weight
- 25%
- Due date
4/10/2024 3:00 pm
- Other conditions
- Peer assessed.
- Learning outcomes
- L01, L02, L04
Task description
Each team is required to write a credit rating report on an ASX listed company. The students will need to conduct thorough credit risk analysis and assign a credit rating to the company. Students can follow the credit rating methodology of major rating agencies. More detailed instruction will be provided on Blackboard.
A Peer Review will be used for feedback purpose. You would need to complete this peer review to receive the final mark for this assessment.
The results of the peer feedback may be used to adjust your overall score for this assessment item based on peer reviewed performance.
More information about Peer Review is discussed in the Assessment Guideline on Blackboard.
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI) or Machine Translation (MT). Students are advised that the use of AI or MT technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Submit in the Blackboard Assessment link.
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Final Exam
- Identity Verified
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 60%
- Due date
End of Semester Exam Period
2/11/2024 - 16/11/2024
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03
Task description
- The final exam will be consisting of problem-solving and short-answer questions. All lectures are examinable.
- This is a 120 minutes exam plus 10 minutes of reading time.
This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) or Machine Translation (MT) tools will not be permitted. Any attempted use of AI or MT may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | (In person) Casio FX82 series or UQ approved , labelled calculator only |
| Open/closed book | Closed Book examination - no written materials permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0 - 29 |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30 - 46 |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47 - 49 |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50 - 64 |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65 - 74 |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75 - 84 |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85 - 100 |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
Grades will be allocated according to University-wide standards of criterion-based assessment.
Supplementary assessment
Supplementary assessment is available for this course.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Find the required and recommended resources for this course on the UQ Library website.
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 |
Seminar |
Treasury, Municipal and Corporate Bonds Learning outcomes: L01 |
Week 2 |
Seminar |
Bond Pricing and Yields Learning outcomes: L02 |
Week 3 |
Seminar |
Duration and Convexity Learning outcomes: L01, L02, L04 |
Week 4 |
No student involvement (Breaks, information) |
Royal Queensland Show Public Holiday Learning outcomes: L01, L02, L03 |
Week 5 |
Seminar |
Credit Risk Analysis Learning outcomes: L01, L02 |
Week 6 |
Seminar |
Term structure of Interest Rates Learning outcomes: L01, L02, L04 |
Week 7 |
Seminar |
Bonds with Embedded Options Learning outcomes: L02, L03, L04 |
Week 8 |
Seminar |
Bond Portfolio Management (I) Learning outcomes: L01, L02, L04 |
Week 9 |
Seminar |
Bond Portfolio Management (II) Learning outcomes: L01, L02, L04 |
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break |
Week 10 |
Seminar |
Interest Rate Derivatives Learning outcomes: L02, L03, L04 |
Week 11 |
Seminar |
Swaps and Credit Default Swaps Learning outcomes: L02, L03 |
Week 12 |
Seminar |
Mortgage-Backed Securities Learning outcomes: L02, L03 |
Week 13 |
Seminar |
Revision Learning outcomes: L01, L02, L03, L04 |
Additional learning activity information
Sustainable Development Goals
This course integrates the following Sustainable Development Goals (SDGs) throughout course learning activities.
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.