MBA641 Fixed Income Securities

for S2P 2012

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Mission Statement: Park University provides access to a quality higher education experience that prepares a diverse community of learners to think critically, communicate effectively, demonstrate a global perspective and engage in lifelong learning and service to others.

Vision Statement: Park University, a pioneering institution of higher learning since 1875, will provide leadership in quality, innovative education for a diversity of learners who will excel in their professional and personal service to the global community.


MBA 641 Fixed Income Securities


S2P 2012 MB


Iman Adeinat


Adjunct Faculty


PhD, University of New Orleans
MA, University of New Orleans

Office Location

Kansas City / MO

Office Hours

9 AM to 7 PM Central Time


Semester Dates

Monday, March 19, 2012 thru Sunday, May 13, 2012

Class Days


Class Time

5:30 - 9:50 PM


MBA 615 and MBA 640

Credit Hours


Fixed Income Markets and Their Derivatives by Suresh Sundarresan, 3rd Edition.ISBN: ISBN # 978-0-1237 0471 - 9

Textbooks can be purchased through the MBS bookstore

Additional Resources:

  1. Calculator: A financial calculator with present value and future value functions for single amount and annuities (PV, FV, and PMT), net present value (NPV) and internal rate of return (IRR) is a must for this course. Texas Instruments BA II Plus Financial Calculator is recomended.
  2. E-Companion Course site: lecture slides, homework Problems, and announcements.

McAfee Memorial Library - Online information, links, electronic databases and the Online catalog. Contact the library for further assistance via email or at 800-270-4347.
Career Counseling - The Career Development Center (CDC) provides services for all stages of career development.  The mission of the CDC is to provide the career planning tools to ensure a lifetime of career success.
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Course Description:
MBA 641 Fixed Income Securities: This course is rigorous study of fixed income securities, including default-free bonds, floating rate notes, and corporate bond. Closely related financial instruments such as forwards and futures on fixed income securities, bond options, and interest rate swaps are also examined, in addition to analyzing specific types of fixed income securities, there will be an examination of the tools used in bond portfolio management. Prerequisites: MBA 615 and MBA 640 (Formerly FI 641) @

Educational Philosophy:

1. Create a desire in the students to continue learning after the course is completed.

2. Motivate the students to pursue their lifelong educational opportunities.

3. Provide an environment that enhances and supports the student’s learning skills.

Learning Outcomes:
  Core Learning Outcomes

  1. Demonstrate, through application, a thorough working knowledge of the analysis of fixed income securities.
  2. Analyze basic characteristics of bonds in alternative sectors, valuation tools, and the factors that influence bond yields.
  3. Estimate risk and returns for fixed income investments, analyze fixed income securities with unique features, and value fixed income investments with embedded options.
  4. Evaluate principles and techniques of risk management for a portfolio of fixed income securities.
  5. Analyze the determinants of interest rate levels and term-structure.

Core Assessment:

Class Assessment:

Weekly Assignment
Homework questions are assigned for every week. I will collect all assignments on the due dates during the session. Students may discuss the homework assignment with their classmates; however, all written work must be of their own. 


There will be a midterm exam and a comprehensive final exam during the semester. The exams will consist of multiple-choice problems and application questions. If a student cannot attend an exam, he/she should notify me before the scheduled exam time if he/she wishes to be eligible for a makeup. The student may be required to provide appropriate documentation to support his/her case.
Students need to select one topic related to the fixed income securities subject. The project/paper proposal is due on week 5. Students will receive the comments before preceding the paper. The final paper will be due in week 7. Students are expected to present their final paper in week 8.


Final grade will be determined as follows:

Weekly Assignment
Term Project
Oral Presentation
Midterm Exam
Final Exam

Final Letter Grades
A  =  90-100%
B  =  80-89%
C  =  70-79%
D  =  60-69%
F  =  below 60%

Late Submission of Course Materials:

Points will be deducted for late assignments. Late assignment will be penalized at the rate of 10% per day, unless a plausible and documented excuse is presented.

Classroom Rules of Conduct:

You are expected to attend all class meetings and be there ON TIME. During classroom discussions please treat other students with courtesy, civility and respect. Please allocate sufficient time for this class during the semester. Keeping track of the course schedule and sticking to it are very important.

Course Topic/Dates/Assignments:

This Course outlines a general guideline. Deviation may be necessary. Students are responsible for all announcements made in class or posted on eCompanion. 



Week 1:

March 21, 2012

Introduction and Overview

Ch. 1: Overview of Fixed Income Markets

Central Banks and Monetary Policies

Ch. 3: Federal Reserve and Fixed Income Markets.

Week 2:

March 28, 2012

Bonds and Their Valuation

Ch. 2: Price Yield Conventions

Week 3:

April 4, 2012

Analytics of Fixed Income Markets

Ch. 8: Yield Curve Analysis

Ch. 7: Bond Mathematics

Exam Review 

Week 4:

April 11, 2012

Analytics of Fixed Income Markets

Midterm Test 

Ch. 7: Bond Mathematics (Con’t)

Ch. 1,2, 3, 8

Week 5:

April 18, 2012

Analytics of Fixed Income Markets

Ch. 9: Models of Yield Curve and the Term Structure    

Ch. 10: Modeling Credit Risk and Corporate Debt Securities

Week 6:

April 25, 2012

 Fixed Income Derivatives

 Ch. 14: Derivatives on Overnight Interest Rates

 Ch. 15: Eurodollar Futures Contracts

Week 7:

May 2, 2012

Fixed Income Derivatives

Term Paper Submission

Ch. 16: Interest-Rate Swaps

Ch. 17: Treasury Futures Contracts

Week 8:

May 9, 2012

Term Paper Presentations

Final Exam


Academic Honesty:
As a learning community, the University upholds the highest standards of academic integrity in all its academic activities, by faculty, staff, administrators and students. Academic integrity involves much more than respecting intellectual property rights. It lies at the heart of learning, creativity, and the core values of the University. Those who learn, teach, write, publish, present, or exhibit creative works are advised to familiarize themselves with the requirements of academic integrity and make every effort to avoid possible offenses against it, knowingly or unknowingly. Park University 2011-2012 Graduate Catalog Page 21


Plagiarism is the appropriation of another person's ideas, interpretation, words (even a few), data, statements, illustration or creative work and their presentation as one's own. An offense against plagiarism constitutes a serious academic misconduct.  Although offenses against academic integrity can manifest themselves in various ways, the most common forms of offenses are plagiarism and cheating. Plagiarism goes beyond the copying of an entire article. It may include, but is not limited to: copying a section of an article or a chapter from a book, reproduction of an art work, illustration, cartoon, photograph and the like and passing them off as one's own. Copying from the Internet is no less serious an offense than copying from a book or printed article, even when the material is not copyrighted.

Plagiarism also includes borrowing ideas and phrases from, or paraphrasing, someone else's work, published or unpublished, without acknowledging and documenting the source. Acknowledging and documenting the source of an idea or phrase, at the point where it is utilized, is necessary even when the idea or phrase is taken from a speech or conversation with another person.

Park University 2011-2012 Graduate Catalog Page 21

Attendance Policy:

Students must participate in an academically related activity on a weekly basis in order to be marked present in an online class. Examples of academically-related activities include but are not limited to: contributing to an online discussion, completing a quiz or exam, completing an assignment, initiating contact with a faculty member to ask a courserelated question, or using any of the learning management system tools.Park University 2011-2012 Graduate Catalog Page 25

Disability Guidelines:
Park University is committed to meeting the needs of all students that meet the criteria for special assistance. These guidelines are designed to supply directions to students concerning the information necessary to accomplish this goal. It is Park University's policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, regarding students with disabilities. In the case of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Additional information concerning Park University's policies and procedures related to disability can be found on the Park University web page: .


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Last Updated:3/8/2012 9:39:03 PM