Overview of the Financial Environments
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· Role of Financial Markets, Securities Traded in Financial Markets.
· Role of Financial Institutions.
· Credit Crisis and Financial Institutions.
Determination of Interest Rate
· Loanable Funds Theory.
· Factors that affects interest rates.
· Forecasting interest rates.
Interest Rate Structures
· Actual yield differentials’ explanations
· Estimating the appropriate yield
· Integrating the theories of term structure.
The Central Bank and Monetary Policy
· How the Central bank controls money supply.
· Mechanics of monetary policy.
· Monitoring the impact of monetary policy.
· Global Monetary Policy
Money Markets
· Money market securities
· Valuation of money market securities
· Globalization of money markets.
Bond Markets and Valuation of Bonds
· Treasury and Federal Agency Bonds
· Municipal bonds
· Corporate bonds
· Globalization of bond markets
· Bond valuation process
Bond Markets and Valuation of Bonds
· Bond price movements
· Sensitivity of bond prices to interest rate movements
· Bond investment strategies
· Valuation and risk of international bonds
Mortgage Markets
● Background of mortgage markets
● Types of residential mortgages
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● Valuation and risk of mortgages
Equity Markets
· Private and public equity Initial public offerings
· Market instruments and architecture
· Information content of market indices
· Stock Exchanges
Financial Futures Markets and Options Markets
● Institutional trading of futures contracts
● Structure of the future markets
● Speculating in and hedging with interest rate futures
● Risk of trading future contracts
● Institutional use of options, How option trades are executed.
Derivatives Markets
● Types of Interest rate swaps
● Risks of interest rate swaps
● Foreign Exchange markets
● Factor affecting exchange rates
Derivative Markets
● Forecasting exchange rates
● Foreign exchange derivatives
● International arbitrage.
● Nature and application of the concept of trust in daily life
● Individual level of responsibility in respect of trust
● Relationship between trust as a virtue and social life