finance class

Finance 445/545 Fall 2016

Financial Management NMSU

Office hours: MW 8.30 to 10.00am

Professor : Hari Sankaran

Office : BC 221

Phone : 575-646-3226

Email : [email protected] Text book : Fixed Income Markets and derivatives, 3rd ed, Suresh Sundaresan, AP.

Goal: This course will enable you to understand and work with bonds. You will learn to estimate

yields curves, term-structure and spot mispriced treasuries. In addition, you will have a working

knowledge of the fixed income institutional structure to make informed portfolio decisions.

Information, Policies and Procedures

1. Prerequisites: Finance 341 or equivalent course for undergraduate students and Fin 503

or equivalent course for graduate students.

2. Exams: There will be two exams in this course. You will need to visit

www.proctoru.com and create an account. I will give you further instructions under a

module called ‘ProctorU’. Each exam will be for a two hour period and will cost you

$22.50 per exam. If you miss the mid-term exam, the weight from the mid-term exam

will be added to the final exam and the final exam will be comprehensive. If you take the

mid-term exam on time the final exam will not be comprehensive.

3. Students with Disabilities: Section 504 of the Rehabilitation Act of 1973 and the

Americans with Disabilities Act (ADA) covers issues relating to disability and

accommodations. If a student has questions or needs an accommodation (all medical

information is treated confidentially), contact:

Trudy Luken, Director Student Accessibility Services (SAS) Corbett Center, Rm. 244

Phone: (575) 646-6840 E-mail:[email protected] Website: www.nmsu.edu/~ssd/.

4. Discrimination: NMSU policy prohibits discrimination on the basis of age, ancestry,

color, disability, gender identity, genetic information, national origin, race, religion,

retaliation, serious medical condition, sex, sexual orientation, spousal affiliation and

protected veterans status. Furthermore, Title IX prohibits sex discrimination to include

sexual misconduct: sexual violence (sexual assault, rape), sexual harassment and

retaliation. For more information on discrimination issues, Title IX, Campus SaVE Act,

NMSU Policy Chapter 3.25, NMSU's complaint process, or to file a complaint contact:

Gerard Nevarez, Title IX Coordinator

Agustin Diaz, Title IX Deputy Coordinator

Office of Institutional Equity (OIE) - O'Loughlin House, 1130 University Avenue

Phone: (575) 646-3635 E-mail: [email protected] Website: http://www.nmsu.edu/~eeo/

5. Grades:

a) Final Grade: Grades are normally available to students on the web within a day or

two of the deadline for submitting grades.

b) Incomplete Grades: Under university policy, incompletes may be given only if a

student has a passing grade at mid-semester (the last day to withdraw from a class)

and is precluded from successful completion of the second half of the course by a

documented illness, documented death, family crisis or other similar circumstances

beyond the student's control. An incomplete is not given to avoid assigning a grade

for marginal or failing work. Requirements for removal of the I grade will be clearly

stated on the I grade form and a copy of the form will be provided to the student.

6. Plagiarism: This means using another person's work without acknowledgment, making it

appear to be one's own. Intentional and unintentional instances of plagiarism are

considered instances of academic misconduct and are subject to disciplinary action such

as failure on the assignment, failure of the course or dismissal from the university. The

NMSU Library has more information and help on how to avoid plagiarism at

http://lib.nmsu.edu/plagiarism/.

7. Writing and Presentation Skills

To assist you in meeting College expectations with respect to writing and presentation

skills, an “Academic Survival Kit” with resources on writing and presentation skills is

available on the College web page at http://business.nmsu.edu/students/survival-kit/

8. Tentative Sequence of Topics

Topics

Ch-1: Introduction

Ch-2: Price/Yield

Ch-5: Repurchase

Ch-6: Auctions

Ch-7: Bond Mathematics

Ch-7: Bond Mathematics

Mid-Term

Ch-8: Yield curve estimation

Ch-8: Yield curve estimation

Ch-15: Eurodollar Futures

Ch-16: Interest Rate Swaps

Ch-17: Credit Default Swaps

9. Grading System

Fin 445

students

Fin 545

students

Homework 40% 40%

Midterm 30% 20%

Final Exam 30% 20%

Project 20%

I will not be assigning fractional grading

89.5 - 100 : A

79.5 – 89.5 : B

69.5 – 79.5 : C

60 – 69.5 : D

Less than 60 : F

10. Differentiated work for graduate students

Graduate students taking this course will be using the same learning material contained in

the modules. The assignments will be different and there will be a project that needs to be

completed by the due date. I will post a set of project topics on canvas and provide more

information later in the course.