MBA641 Fixed Income Securities

for F2P 2012

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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


F2P 2012 DL


Adeinat, Iman M.


Adjunct Professor


PhD, University of New Orleans
MS, University of New Orleans

Office Location

Kansas City, MO

Office Hours

8:00 a.m. to 7:00 p.m


Semester Dates

Monday, October 22, 2012 to Sunday, December 16, 2012

Class Days


Class Time



MBA 615 and MBA 640 (Formerly FI 641)

Credit Hours


Title/Edition: Bond Markets, Analysis and Strategies (8th Edition) 
Author: Fabozzi, Frank 
Publisher: Pearson (2012)
ISBN: 13: 978-0-13-274354-9

Textbooks can be purchased through the MBS bookstore

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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:

Discussion Questions (20%) :Students are to select two discussion questions from those provided each week and provide thoughtful answers and post their response by midnight Thursday. In addition the students have to comment on at least two original postings from another student by 6:00pm CT Sunday night.

Homework Assignment (17.5%): Each week students are required to complete an individual assignment. The assignment will consist of selected problems from your textbook. Students are required to show their work and to submit their assignment to the appropriate Dropbox each week.

Exams (10% each exam): There will be three exams. All exams contain mainly short essay questions, short numerical problems and multiple choices. The exams will stress the most important material covered in class.

Final Term Project (32.5%): There will be a final term project that involves analyzing and writing up a comprehensive report on one case. The purpose of this project is to describe in detail the risk characteristics of a bond Portfolio.


Discussion (25 points each x 8) 200
Homework (25 points each x 7) 175
Exams (100 points each x 3) 300
Final Term Project 325
Total 1000

Grading Scale

A = 100-90% = 900 - 1000 points
B = 89-80% = 800 - 899 points
C = 79-70% = 700 - 799 points
D = 69-60% = 600 - 699 points
F = less than 60% = less than 600 points

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. In addition, unless there is a reason beyond your control, e.g. automobile accident, medical excuse, you are expected to take the exam with the rest of the class. If you are not going to meet the due date, you must notify me before the scheduled exam time if you wish to be eligible for a make-up and you must present a documented proof (e.g. a doctor’s/hospital note) for your absence. If you are eligible for a make-up exam, it will be rescheduled.

Classroom Rules of Conduct:

Online Etiquette

All your Online communications need to be composed with fairness, honesty and tact. Spelling and grammar are very important in an Online course. What you put into an Online course reflects on your level of professionalism. Netiquette is a set of guidelines for how individuals communicate over the Internet. The important concept here is that students respect one another.

Course Topic/Dates/Assignments:



Assignment/ Exam/Project

Week 1


Chapter 1: Introduction

Chapter 2: Pricing of Bonds

Chapter 3: Measuring Yield

Introduce Yourself

Discussion Questions

Homework Assignment 1

Week 2


Chapter 4: Bond Price Volatility

Discussion Questions

Homework Assignment 2

Week 3


Chapter 5 – Factors Affecting Bond Yields and the Term Structure of Interest Rates

Chapter 6 – Treasury and Federal Agency Securities

Discussion Questions

Homework Assignment 3

Exam 1

Week 4


Chapter 7 – Corporate Debt Instruments

Chapter 8 – Municipal Securities

Chapter 9 – International Bonds

Discussion Questions

Homework Assignment 4

Week 5


Chapter 22 – Bond Portfolio Management Strategies   

Chapter 23 – Bond Portfolio Construction

Discussion Questions

Homework Assignment 5

Exam 2

Week 6


Chapter 26 – Interest-Rate Futures Contracts

Discussion Questions

Homework Assignment 6

Week 7


Chapter 28 – Interest-Rate Swaps, Caps, and Floors

Discussion Questions

Homework Assignment 7

Week 8



Discussion Questions

Exam 3

Final Term Paper

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 2012-2013 Graduate Catalog Page 21-22


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 course related question, or using any of the learning management system tools. Park University 2012-2013 Graduate Catalog Page 26

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: .

Additional Information:



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Last Updated:10/4/2012 6:49:40 PM