Michael J

http://ksuweb.kennesaw.edu/~smazzott/teaching/FIN4320MM/Fin4320...

Michael J. Coles College of Business Kennesaw State University

Dr. Stefano Mazzotta, Department of Economics and Finance

Room: Burruss Building Office Hours: Before class or by appointment Phone: (770) 423-6341 Fax: (770) 499-3209 E-mail: smazzott@kennesaw.edu www.mazzotta.info

Course Description
This is an elective advanced finance class. It provides the business undergraduate students with a working knowledge of the fixed-income markets. Fixed income securities represent the largest global financial markets, even larger than equities. Good knowledge of fixed income securities is also useful for the corporate sector, as companies often raise funds in the form of bonds. This course helps with the Chartered Financial Analysts (CFA) examination, which involves many questions on fixed-income markets. The course is based on lectures and computer demostrations. The workload for this course is heavy, and at the same time focused on practical applications. Prerequisites: Business Majors: Sophomore GPA Requirement and FIN 3100; Non business Majors: 60 credit hours including FIN 3100 and permission of the department chair. Given the quantitative nature of the topics, the student needs to proficient in calculus, stats and elementary finance at the college level. Students taking this course understand that failure is likely for those who are not fluent in the topics in this prerequisites list.

Textbook
Martellini, L., Priaulet, P. and Priaulet, S., 2003, Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies, The Wiley Finance Series. ( MPP)

Other Suggested Readings

Suresh Sundaresan, Fixed Income Markets and Their Derivatives, 3nd edition, Southwestern. Bruce Tuckman, Fixed Income Securities: Tools for Todays Markets, 2nd edition, Wiley.

Learning Objectives

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http://ksuweb.kennesaw.edu/~smazzott/teaching/FIN4320MM/Fin4320...

This course covers topics such as bond valuation, yield-to-maturity, forward rates, discount factors, term structure theories, durations, convexities, and hedging strategies. It also introduces interest-rate risk management, and some notions related to derivative products. (Assessment -Tests) Students learn advanced spreadsheet skill as they apply to financial analysis. (Assessment Tests)

Web page: I will use my web page to distribute class notes and other relevant material. E-mail policy: I will only use your KSU official e-mail address to disseminate information or to contact you. Your e-mails will receive the highest priority if you write in the subject FIN4320, and immediately after the subject of your message. Messages that do not show FIN4320 in subject line may be automatically deleted.

Course Expectations and Policies

Exams: The exams are closed book and notes. Exams are integrative. Exams can consist of problems, multiple choice questions, short answer, true/false statements, and short essays. The content of the computer applications is part of the exam material. As the general rule, there will be no make-up exams. In cases of well-documented circumstances beyond your control, you need to inform the instructor by e-mail prior to the exam and discuss the possibility of alternative arrangements. Possible alternatives include but are not limited to alternative evaluation instruments, oral examination, re-weighting of remaining work, or other types at the instructors discretion. General Information about exams: You can use a financial calculator. To earn credit for any problem you must show enough work to explain how the answer is obtained. Simply writing down the final number/answer from a calculator earns no credit. You must show how you obtained the answer following procedures covered in class when solving similar problems. Assigned problems for the course: Assignments and problems from textbook are suggested for every lecture and are published on the course webpage. Solutions will be made available to you. You are encouranged to work on the assigments in a timely fashion. You are also welcome to show me you home work after seeing the solutions and discuss all remaining issues. Group work: You are strongly encouraged to work in groups, especially on the home works and the lab reviews. However, there will be no formal assessment of work done in groups. Attendance: Attendance in this course is mandatory. GRADING Comprehensive final exam 650 points Mid term exam 350 points The final grade is determined according to the formula: Max([Final grade]/650*1000, Mid term grade + final grade ). That is, the mid term drops out if the final has a better grade. The letter grade for the course is given by the following scale: 1000 Point Scale

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A B C D F Expectations You are expected to:

900-1000 points 800-899.99 700-799.99 550-699.99 below 549.99

Be proficient in algebra, calculus, analytic geometry, and stats at the college level in line with the prerequisites. Download and read prior to each class lectures notes and bring them to class. Also, you are expected to download all materials posted for this class from the web After each lecture, review the material from the notes, double check with material from the book and apply the concepts to solving the assigned problems Work the assigned problems and questions in a timely manner. You should work these problems at least two times to make sure you understand the process. Allocate sufficient time to study outside the classroom. Be on time Frequently check the course web page and download the material Check your KSU e-mail. I will sometimes communicate with the entire class via e-mail Actively participate to the computer exercises and review the material and procedures covered What it takes to get an A in this course? The short answer: Complete mastery of the the topics discussed in class. How to get there? Read the material in advance, work on the assigned problems in a timely fashion (same day of the lecture), redo the problems and labs several times, and most importantly develop a critical thinking and active learning approach to the class. A good understanding of the economics, as well as the math of the material is essential to do well in the course.

ADA notice: The Americans with Disabilities Act of 1990 (ADA) requires KSU to provide a reasonable accommodation to any individual who advices us of a physical or mental disability. If you have a physical or mental limitation that requires an accommodation or an academic adjustment, please arrange a meeting with me at your earliest convenience (if have not already done so). You should also contact Carol Pope at (770) 423-6443. Academic Integrity: Every KSU student is responsible for upholding the provisions of the Student Code of Conduct, as published in the Undergraduate and Graduate Catalogs. Section II of the Student Code of Conduct addresses the Universitys policy on academic honesty, including provisions regarding plagiarism and cheating, unauthorized access to University materials, misrepresentation/falsification of University records or academic work, malicious removal, or destruction of materials, malicious/intentional misuse of computer facilities and/or services, and misuse of student identification cards. Incidents of alleged academic misconduct will be handled through the established procedures of the University Judiciary Program, which includes either an informal resolution by a faculty member, resulting in a grade adjustment, or a formal hearing procedure, which may subject a student to the Code of Conducts minimum one semester suspension requirement. Updated 5/2/2012

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