KFANDL Bond Analysis

Faculty of Economics and Administration
Autumn 2008
Extent and Intensity
0/0. 4 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ing. Boris Šturc, CSc. (lecturer)
Guaranteed by
doc. Ing. Martin Svoboda, Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Timetable
Sun 5. 10. 12:50–16:15 P312, 16:20–19:30 P312, Sat 22. 11. 12:50–16:15 P312
Prerequisites
Fundamentals of financial mathematics
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
Bond Analysis (PFANDL) The aim of the course is to understand bonds as securities tradable on capital markets. Definition of bond duration and bond convexity, the use of bonds: duration and convexity of bonds, their utilization. Topics covered include: bond pricing, gross price, net price, tax; bond duration, deriving the relation for duration, modified duration, dollar duration; convexity, deriving the basic relation, its importance and utilization, percentage and dollar convexities. The course also explains bond utilization, its legal forms, basic accounting of bonds in commercial banks and for entrepreneurs. The course provides solutions to practical tasks, such as calculations of duration and convexity and keeping bond accounts. Credit requirements: solving assigned tasks and active participation in seminars. Examination: written and oral.
Syllabus
  • Theme plan - Lectures:
  • 1. The economic concept of bonds and their importance
  • 2. Fundamentals of valuation of bonds - income, present value, net present value
  • 3. Bond duration and its use in the management of assets and liabilities of commercial banks
  • 4. Bond convexity and its importance
  • 5. Specific forms of bonds
  • 6. Trading in bonds on the Czech market and in the developed countries
  • 7. Accounting and tax treatment of bonds from the perspective of commercial banks
  • 8. Solution to practical problems of pricing bond, present value, net present value, duration and convexity. Accounting and tax treatment of bonds.
Literature
  • ŠTURC, Boris. Oceňování obligací a obchodování obligacemi. 1. vyd. Brno: Masarykova univerzita, 2001, 51 s. ISBN 8021025085. info
  • BREALEY, Richard A. and Stewart C. MYERS. Teorie a praxe firemních financí. Translated by Zdeněk Strnad - Vilém Jungmann - Tomáš Hlaváč. Vyd. 1. Praha: Computer Press, 2000, xix, 1064. ISBN 8072261894. info
  • BLAKE, David. Analýza finančních trhů. 1. vyd. Praha: Grada, 1995, 623 pp. ISBN 8071692018. info
  • SHARPE, William F. and Gordon J. ALEXANDER. Investice. Translated by Zdeněk Šlehofr. 4. vyd. Praha: Victoria Publishing, 1994, 810 s. ISBN 80-85605-47-3. info
Assessment methods
The type of teaching - lectures.
The exam - written and oral. Requirements for completion - passing tests.
Language of instruction
Czech
Further Comments
The course is taught annually.
Teacher's information
http://www.derivat.cz
The course is also listed under the following terms Spring 2002, Spring 2003, Spring 2004, Spring 2005, Spring 2006, Spring 2007, Autumn 2007.
  • Enrolment Statistics (recent)
  • Permalink: https://is.muni.cz/course/econ/autumn2008/KFANDL