Syllabus

Draft, Aug 10, 2014

Finance 473 Debt and Money Market

Syllabus

Andrei Simonov / Room 321/ tel. 884-0455 / simonov@msu.edu

http://angel.msu.edu

“Debt and Money Markets” is one of the primary topics in finance and will be of interest to any senior student who is interested in either investment or corporate finance. This course provides students with a focused examination of the debt market. Topics examined include valuation, term structure of interest rates, derivatives of fixed income instruments, Treasury securities, corporate bonds, mortgage-backed securities, municipal securities, and bond portfolio management. The course should also be beneficial to students that want to pass CFA exams.

Teaching material:

1. Course note package and additional materials online;

2. Textbook: Frank J. Fabozzi, Bond Markets, Analysis and Strategies, (Hardcover: 792 pages, Publisher: Prentice Hall; 6th or 7th editions) Available in Spartan Bookstore.

3. Cases (case pack is available for sale in Spartan Bookstore)

a. Tombstones (HBS 5-213-085)

b. Cougars (HBS Case 295006).

c. Enron Corp.: Credit Sensitive Notes (HBS Case 297099).

d. The B.F. Goodrich- Rabobank Interest Rate Swap (HBS Case 5-295-161)

e. The Euro zone and the Sovereign debt Crisis[Darden Case UVA-F-1649]

Instructional methods:

The course will be presented in a traditional lecture format. Students will be evaluated on several assignments, case studies, and exams. The weights are as follows:

participation 5%,

four assignments 28% (7% each),

five cases 35% (7% each),

midterm and

final exams (16% each).

All assignments are due on due date before the start of class. In case you miss the case/assignment without good reason (for example, certified by MD medical need), the exams weight will increase correspondingly.

Grading:

The course will be graded on a curve according to instructor discretion. Approximately the curve will work as...