This course examines the valuation of fixed-income securities, the market operations and management of risk. Topics include: valuation of bonds, bond risk measures including Macaulay duration, modified duration, dollar duration, and convexity, price sensitivity to yield changes, term structure of interest rate, measuring and managing interest rate risk, treasury and federal agency securities, corporate debt instrument, and asset-backed securities.

After completing this course, the student will be able to:

1. Identify the different types of fixed income securities and their characteristics.
2. Value fixed income securities.
3. Measure bond risk using duration, convexity, and price sensitivity to yield changes.
4. Measure spot yield.
5. Build the term-structure curve of interest rates.
6. Identify the different types of Treasury and federal agency securities, as well as corporate debt instruments.
7. Identify the main features of asset-backed securities.
8. Write a concise, logical and coherent report on issues related to fixed income securities topics.
9. Recognize the ethical dilemma that arises in the fixed income securities domain.

1. Course Introduction
2. Measuring Yield
3. Bond Price Volatility
4. Bond Yields and Term Structure of Interest Rates
5. Treasury and Federal Agency Securities
6. Corporate Debt Instruments
7. Asset-Backed Securities

Frank Fabozzi (2016). Bond Markets, Analysis, and Strategies. Ninth Edition. Pearson. ISBN 0133796779

Barbara petitt, Jerald Pinto, and Wendy Pirie (2015). Fixed Income Analysis. Third Edition. CFA Institute Investment Series. ISBN 978-1118999493