FINANCIAL MARKETS II
Tutor: Ms. MOUTON
STATEMENT ABOUT ACADEMIC HONESTY AND INTEGRITY
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All students of the ABN, upon signing their registration forms, commit themselves to abide by the policies and rules of the institution. The core activity of the ABN is learning and in this respect academic honesty and integrity is very important to ensure that learning is valid, reliable and credible. The Academy of Banking Namibia therefore does not condone any form of academic dishonesty, including plagiarism and cheating on tests and assessments, amongst other such practices. The ABN requires students to always do their own assignments and to produce their own academic work, unless given a group assignment.
CLASSROOM POLICIES
Class Guidelines · Students are highly encouraged to ask questions and contribute their insights and observations, as long as they are relevant to the subject matter being discussed. · Disruptive students will be asked to leave the room. · Restroom needs should be attended to before or after the class, or during breaks between classes. It should not be done during class. · Eating, drinking, and smoking are not allowed inside the classroom. · Turn off cellular / mobile phones or activate the silent vibration mode to avoid disrupting the class discussion. · Laptops and other electronic gadgets are NOT allowed during class discussions.
Contact Details and Consultations · Regarding consultation, students may get in touch with their tutor using the following email address: sophiafm295@gmail.com |
Course Information
Course Code and Title: FM 3000 – Financial Markets II
Programme:
Contact Hours: 2 hours per week lectures
Course Description: This course will provide students with an introduction to financial markets and an evaluation of the institutions, instruments and participants involved in the industry. The mainstream markets to be evaluated include the money, capital, equity, and debt markets. The subject systematically reviews each of the mainstream financial markets and investigates the various institutional participants and the different types of financial instruments offered.
NQF Level: 7
CREDITS:
PREREQUISITES: None
Prescribed Text Book
The prescribed textbook for this course is Viney’s (2012) Financial Institutions, Instruments and Markets, 7th Edition published by McGraw Hill.
Learning Outcomes:
· Explain the meaning and significance of financial markets, the different financial markets and the importance of each market;
· Demonstrate knowledge of the key features of a bond; compute the accrued interest and all-in price of a bond.
· Understand the banking system and describe the role of regulatory bodies in regulating how banks manage their capital.
· Understand different types of financial markets
Course Delivery Methods: The course will be offered on full time (FM), Part-time (PM) and Distance (DI) modes.
The course will be facilitated through the following learning activities:
1. Presentation of materials in lectures
2. Assigned readings and discussions
Assignments
The assessment for this course will be based on continuous assessment and end of semester examination (three-hour paper). The Continuous Assessment (CA) mark is comprised of two assignments and contributes 50% to the Final Mark. Minimum pass requirement for this course: 50%.
Course Schedule
Topics
Financial Markets II
Unit 1 INTRODUCTION TO FINANCIAL MARKETS
1.1 What is a Financial Market
1.2 Types of Markets
1.3 Trading Related Concepts in the Financial Market
Unit 2 BOND RELATED CONCEPTS
2.1 What is a Bond
2.2 Types of Bonds
2.3 What are Global Bonds
2.4 Bonds Classifications
2.5 What is a Government Bond
2.6 What is a 30-Year Treasury
Unit 3 FINANCIAL SYSTEM ENVIRONMENT
3.1 Financial Institutions
3.2 Financial Services
3.3 Financial Instruments
3.4 London Interbank Offered Rate (LIBOR)
3.5 Financial Crisis
Unit 4 READING THE INCOME STATEMENT
4.1 Users of Financial Statements
4.2 The income Statements
4.3 Composition of the Income Statement
4.4 Compilation of Income Statement
4.5 Interpretation of Items in the Income Statement
Unit 5 READING THE BALANCE SHEET
5.1 The Balance Sheet
5.2 Composition of the Balance Sheet
5.3 Compilation of the Balance Sheet
5.4 Interpretation of the Balance Sheet
Unit 6 READING THE CASH FLOW STATEMENT
6.1 The Cash Flow Statement
6.2 Composition of the Cash Flow Statement
6.3 Compilation of the Cash Flow Statement
6.4 Interpretation of the Cash Flow Statement
6.5 Self-Test Question
Unit 7 ANALYSIS OF FINANCIAL STATEMENTS
7.1 Importance of Financial Statements
7.2 Basic Financial Ratios
7.3 Computations of Financial Ratios
7.4 Significance and Meaning of Financial Ratios
7.5 Analysis of Financial Ratios
Unit 8 BASICS OF THE BOND MARKET
8.1 Key Features of a Bond
8,2 What is a Cum Interest Bond
8.3 Calculation of the Accrued Interest
8,4 Calculation of the AIMn price (AlP) of a Cum Interest Bond
8.5 Calculation of the Clean Price
8.6 What is an Ex Interest Bond
8.7 Calculation of the All-in price (AlP) of an Ex Interest Bond
Unit 9 CUM INTEREST BONDS
9,1 All-in price (AlP) of a Cum Interest Bond
9.2 Cum Interest Bond trading at a Premium
9.3 Cum Interest Bond trading at a Discount
9.4 Calculations of Cum Interest Bond
Unit 1O EX INTEREST BONDS
10,1 All-in price (AlP) of an Ex Interest Bond
10.2 Ex Interest Bond trading at a Premium
10.3 Ex Interest Bond trading at a Discount
10.4 Calculations of an Ex Interest Bond
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IMPORTANT DATES: NOTE: The following dates are subject to change based on the needs of the students at the lecturer’s prerogative. Students will be notified ahead of time of any changes.
General Academic Policies: It is the student's responsibility to be familiar with and adhere to ABN’s Policies.
AUTHORISATION: This course is authorized for use by:
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ACKNOWLEDGEMENT BY STUDENT
(To be completed by all students on the course, detached from the course outline and kept on record in the department)
I, (insert name), (Student number), hereby acknowledge that I have received this course outline for (insert course title and code), and that I have familiarized myself with its content, in particular the statement about academic honesty and integrity. I agree to abide by the Policies and arrangements spelt out in this course outline.
_________________ ___________________ Signature of Student Date
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