Department of Business Administration

Course Outline & Class Calendar

Semester: Fall 2018
Program: Master of Business Administration
Semester: Fall 2018
Program: MBA
Instructor Name: Md. Zahidur Rahman Course Title: Money and Capital Market
Designation: Lecturer Course Code: FIN 601
Contract Hour/ Room: 314 Course Credit Hour/Per Week: 03 Hour
Phone/Cell: 01745335778 Class/ Per Week: 1 (One)
Email: zahidrahman@yahoo.com Class Day / Lecture Hour: Friday
Day Off: Monday & Wednesday Room Number: 307

Course Description:
This course examines the form and function of various financial markets and the manner in which financial managers
use these markets to accomplish strategic corporate objectives. The objective of this course is to prepare students for
successful interaction with financial markets and institutions. Focus will be placed on the behavior of major financial
institutions and their role in the intermediation process as suppliers of funds as well as the form and function of specific
financial markets.

Course Learning Objectives:

1. Develop proper understanding about the role and structure of the financial system
2. Explain key concepts such as financial claim, financial intermediation and financial markets
3. Understand how financial markets and instruments operate and how they can be used to achieve economic
objectives
4. Develop skills required for work in a financial institution, in a various areas of government using or regulating the
financial sector

Course Contents

01. Role of Financial Markets and Institutions 06. Bond Markets

02. Determination of Interest Rates 07. Bond Valuation and Risk
03. Structure of Interest Rates 08. Mortgage Markets
04. Monetary Policy 09. Stock Valuation and Risk
05. Money Market and Money Market Instruments 10. Financial Futures Markets

Instructor Initial Sign

 Uniform Class Calendar

Classes Contents Topic Covered/ Classes Teaching Methods

Class 01 Role of Financial Overview of financial market, Types, Securities traded Lecture, Assignment
Markets and in financial market, Role of financial institutions in
Institutions financial market: depository and non-depository.
Class 02 Monetary Policy Monetary policy, Mechanics of monetary policy, Lecture, Assignment.
Monitoring the impact of monetary policy: Impact on
financial markets, Global monetary policy.
Class 03 Money Markets Overview of money market, Money market securities: Lecture, Assignment.
Treasury bills, Commercial paper, Bankers acceptance;
Certificate of deposit, Negotiable Certificate of deposit,
Repurchase agreements.
Class 04 Money Markets Institutional use of money markets, Valuation and risk Lecture, Assignment,
of money market securities. Exercise, Problem Solving.
Class 05 Bond markets Background on bonds, Different types of bonds their Lecture, Assignment.
characteristics, Bond yields: yield from issuer’s
perspective and investor’s perspective, Participation of
financial institutions in bond market.
Class 06 Bond Valuation and Bond valuation process, Factors that affect the bond Lecture, Assignment,
Risk prices, Sensitivity of bond prices to interest rate Exercise, Problem Solving.
movements, Bond investment strategies.
Class 07 Bond Valuation and Bond valuation, Measuring bond duration. Lecture, Assignment,
Risk Exercise, Problem Solving.
Class 08 Mortgage Markets Background on mortgages, Classifications of mortgages, Lecture, Assignment,
Factors affecting Mortgages price, Valuation and risk of Exercise, Problem Solving.
mortgages.
Class 09 Stock Market and Background on Stock, Types, Participants in stock Lecture, Assignment.
Valuation markets, Stock valuation methods, Factors that affect
stock prices.
Class 10 Stock Market and Stock valuation, Stock performance measurement, Stock Lecture, Assignment,
Valuation market efficiency, Forms of efficiency. Exercise, Problem Solving.
Class 11 Financial Futures Background on financial futures, Institutional use of Lecture, Assignment,
Markets future markets, Structure of the future market, Exercise, Problem Solving.
Speculating with interest rate futures, Hedging with
interest rate futures, Risk of trading futures contracts.
Class 12 Option Markets Background on options, Comparison of options and Lecture, Assignment,
futures, Institutional use of option markets, Use of Exercise, Problem Solving.
options to speculate and hedge, Use of option on futures.

Required Texts: Financial Markets and Institutions: Jeff Madura, 9th edition
Reference Texts:
1. Money and capital market: Peter S. Rose, 6th edition
2. Capital markets institutions and instruments: Frank J Fabuzzi and Franco Modigliani, 2nd edition.

Instructor Initial Sign

Important Guidelines for the Students:

1. Class attendance is mandatory. Absent of 70% classes; disqualify the student for final examination only authority
recommendation will be accepted with highly reasonable causes.
2. Dates for exams will be strictly followed. No makeup exam (Normal case), for exceptional case university rules and regulation
should be followed.
3. Late submission of assignments is not allowed. Late submission of assignments will be only taken with highly reasonable
causes but 20% mark will be deducted.
4. To pass this course student will have to appear mid-term and final examination.
5. Students must bring his/ her own books, scientific calculator, pen, pencil, and scale (plastic) in class room.
6. Switch off or vibrate the mobile phone during the class time. Mobile phone and smart watch is prohibited in the exam hall.
7. Students interact with instructor with a friendly wits, feel free and happy mood.

Evaluation

Topic Percentage of Evaluation

Final Exam 40%
Mid Term Exam 30%
Quiz / Class Test 10%
Assignment (with viva or presentation) mark is equally treated 10%
Attendance, Class Participation & Student Behavior and Attitude. 10%
Total 100%
**Grading Policy follows as per the rules of City University & UGC**

Grading Policy: City University

Marks Grade Grade Point Remarks

80 - 100% A+ 4.00 Outstanding
75 - 79% A 3.75 Excellent
70 - 74% A- 3.50 Very Good
65 -69% B+ 3.25 Good
60 - 64% B 3.00 Satisfactory
55 - 59% B- 2.75 Above Average
50 - 54% C+ 2.50 Average
45 - 49% C 2.25 Below Average
40 - 44% D 2.00 Pass
0 - 39% F 0.00 Fail

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Instructor Signature Approved by Authority (HOD/ DEAN)

Blueprint: SPZ (HOD, DBA, CU)