Financial markets

BCO224 Financial Markets Assignment 1

Task

· individual

· answer the questions below

· submission format: pdf or ms word

Formalities:

· Wordcount: no more than 1000-1800 words

· Cover, Table of Contents, References and Appendix are excluded of the total wordcount.

· Font: Arial 12,5 pts.

· Text alignment: Justified.

· The in-text References and the Bibliography have to be in Harvard’s citation style.

Submission: Week 3. Via Moodle (Turnitin). Sunday, 13th of February. Time: 23:59.

Weight: This task is a 40% of your total grade for this subject.

It assesses the following learning outcomes:

· Outcome 1: To be able to price bonds

· Outcome 2: Have general understanding of what happens in the markets recently

· Outcome 3: To be able to identify and exploit arbitrage opportunities in bonds markets

Question 1: Bond pricing [50 points]

Question 2: Market outlook [20 points]

(no more than 800 words)

What are the main risks on financial markets in 2022? How would you manage these risks? What are the promising asset classes and/or sectors of economy you would invest in 2022?

(hint: you can use market outlook reports of leading investment firms/banks)

Question 3: Arbitrage strategy [30 points]

Rubrics

Rubrics

	Descriptor
9-10	The student demonstrates an excellent understanding of the concepts.
8-8.9	The student demonstrates a good understanding of the concepts.
7-7.9	The student demonstrates a fair understanding of the concepts.
6-6.9	The student demonstrates some, but insufficient understanding of the concepts.
3-5.9	The student demonstrates insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the student.
1-2.9	The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas or concepts.
0	The student leaves the question blank or cheats.

Points are stated at the end of each question.