Fixed Income Securities And Markets - 2016

Unit summary


  • Level of Study: Undergraduate Level 3
  • Study load: 0.125 EFTSL
  • Delivery method: Fully Online
  • Prerequisites: Yes
  • Duration: 13 weeks
  • Government loans available: FEE-HELP, HECS-HELP
  • Availability for 2016: SP2
  • Availability for 2017: SP2
  • Assessment: Assignments - 40 - 50% , Project - 50 - 60%

Unit provided by

2016 Fees
Domestic 1,305.00
HECS 1,305.00
International 1,555.00

Financial markets domestically and internationally have undergone radical changes over the past fifteen years. Electronic trading on a continuous basis takes place in deregulated, globalised markets virtually on a continuous basis. In addition, in most western economies, increasingly greater responsibility is being transferred to individuals to make provision for their own retirement incomes. Also in the last couple of years the system has been found wanting due to the Global Financial crisis.

This unit looks at the fixed interest securities and know they are used by the markets by corporate and especially governments. The unit will also look at the relationship between the GFC and the fixed securities market and how institutions have used the available instruments to overcome some of the problems within the financial markets.

At the completion of this unit students will be able to:

  1. explain the main reasons for the existence of interest rates and the concept of supply of and demand for loanable funds as the factors determining the level of interest rates in an economy
  2. describe the basic features of bonds and the risk associated with investing in bonds
  3. discuss the debt market in Australia, the US and the Euromarkets
  4. understand the methods involved in calculating the price and interest related to debt instruments
  5. identify the risks associated with debt instruments and the measures used to reduce these risks
  6. understand the types of derivatives available and how they are used.
  7. understand the cause of the Global Financial Crisis and it's implications for the present and future markets
  • Assignments — 40 - 50%
  • Project — 50 - 60%

Equivalent units

You cannot enrol in this unit if you have successfully completed any of the following unit(s) because they are considered academically equivalent:

  • FIN330 — Fixed Income Securities And Markets

Mandatory prerequisites

You must have successfully completed the following unit(s) before starting this unit:

If you have completed equivalent study at another university, please contact a Student Advisor for advice.

  • Additional materials
  • Broadband access

This unit addresses the following topics.

1Bond markets
2Mathematics of interest rates and annuities
3Pricing: short-term and long-term instruments
4Term structure of interest rates
6Debt futures and options
7Other derivatives
8Mortgages - CDO's
9Global Financial Crisis and the future

This unit is delivered using the following methods and materials:

Instructional Methods

  • Discussion Forum/Discussion Board
  • Online assignment submission
  • Podcasting/Lecture capture
  • Standard Media
  • Web links

Print based materials

  • Welcome Letter

Online materials

  • Printable format materials

This unit is part of a major, minor, stream or specialisation in the following courses:

This unit may be eligible for credit towards other courses:

  1. Many undergraduate courses on offer through OUA include 'open elective' where any OUA unit can be credited to the course. You need to check the Award Requirements on the course page for the number of allowed open electives and any level limitations.
  2. In other cases, the content of this unit might be relevant to a course on offer through OUA or elsewhere. In order to receive credit for this unit in the course you will need to supply the provider institution with a copy of the Unit Profile in the approved format, which you can download here. Note that the Unit Profile is set at the start of the year, and if textbooks change this may not match the Co-Op textbook list.
This unit does not have a prescribed textbook(s).

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