MDL803
| MDL803 | |
|---|---|
| Fixed Income Securities | |
| Credits | 3 |
| Structure | 3-0-0 |
| Pre-requisites | MSL302 or MSL708 |
| Overlaps | |
MDL803 : Fixed Income Securities
[edit]The course covers types of debt securities, who are the market participants in the debt market, regulatory framework, and how debt market in linked to the macroeconomic environment. It covers basic features of the debt market instruments, their valuation, yield measures, duration and convexity measures, and term structure of interest rates. The course covers simple bonds, bonds with embedded options and asset-backed securities, arbitrage-free valuation, reduced and structure models of credit risk, interest rate derivatives, and construction of bond portfolios and how performance of bond portfolios in evaluated. MDL804 Behavioural Science 1.5 Credits (1.5-0-0) This course aims to acquaint students with the area of Behavioral Finance. We begin by understanding the classical rational finance and then discuss the deviations from it. We then discuss some of the common biases in humans and how they affects finance and the related aspects. We connect all of these to study the concept of prospect theory. We also introduce some market anomalies and their possible explanations using behavioral finance. To conclude, we develop framework on how we can mitigate these biases as investor and in firms. MDL805 Financial Technology 1.5 Credits (1.5-0-0) Pre-requisite(s):