INV3702
NOTES
,PREFACE
Dear Student
Welcome to the Fixed Income Analysis module (INV3702). This module aims to equip
students with a well-rounded and systematic knowledge base on fixed income
securities, including a detailed knowledge of the valuation of fixed income securities
based on interest rate forecasts, investment horizons and risk considerations.
This module builds upon the foundation laid by INV2601 (Introduction to Investments)
and focusses specifically on one of the two major investment asset classes: fixed
income securities. The companion module, INV3701 (Equity Asset Valuation) deals
with the other major asset class: equities. Although they are related, INV3701,
INV3702 and INV3703 can be studied independently. They each offer a closer look
at their respective financial instruments. At Honours level, INV4801 brings together
these aspects and discusses how asset classes are blended in the context of
managing investment portfolios.
This module is part of the Investment series offered by Unisa at third-year level and is
based on the CFA curriculum. The Chartered Financial Analyst® (CFA®) programme
is not offered by Unisa; it is offered by the CFA Institute (in the United States of
America) by means of distance education. Details on the CFA programme may be
obtained from www.cfainstitute.org.
The UNISA Investment series also includes:
• Second-year level
INV2601 (Introduction to Investments)
Purpose: To enable students to gain insight into investment in financial assets; the
investment environment; the risk-return framework; fundamental and technical
analysis; portfolio management.
• Third-year level
INV3701 (Equity Asset Valuation)
,Purpose: To enable students to determine the fair value of a firm's shares based on
economic prospects, current and forecast financial performance as well as risk
assessment.
INV3703 (Derivatives)
Purpose: To enable students to gain insight into risk management with derivatives:
options contracts; futures, and forward contracts, interest rate swops agreements,
future rate agreement; managing the risk of a portfolio.
• Honours level
INV4801 (Portfolio Management)
Purpose: To enhance students' knowledge of portfolio management. To provide an
advanced understanding and analysis of an Investment Policy Statement (IPS), capital
market expectations, asset allocation, fixed income portfolio management, equity
portfolio management, alternative investments portfolio management, and portfolio
performance evaluation.
If you have not studied INV2601, or would like a refresher of the module, you can
access the study guide under Additional Resources. This ensures that all students,
including those from other universities, are on equal footing. Please note that the
INV2601 study guide does not form part of the notional hours for this module. 120
notional hours are recommended for study, revision and assessment of this module.
This is an online module and must be studied via myUnisa. Printed study material will
not be provided. The online study material is presented as a series of lessons. Each
lesson contains reference to the sections of the prescribed book that you need to
study, as well as learning outcomes and activities. Seeing that this is a module at the
exit level of a degree, you are expected to do autonomous reading and make your
own notes to use for revision. The online lessons should be used in conjunction with
the module’s tutorial letters, the prescribed textbook, and the other resources on
myUnisa. Consider getting the e-Book version to save cost. Details of the prescribed
book are as follows.
, Adams, JF & Smith, DJ (2019). Fixed Income Analysis, 4th edition. John Wiley &
Sons Inc., Hoboken, NJ ISBN: 9781119627289
REFERENCES
At the end of each lesson I include a list of references that I consulted in writing this
module. If you would like to know more about a particular section of the work, you are
encouraged to consult the relevant reference work.
Kind regards
Your Lecturers
NOTES
,PREFACE
Dear Student
Welcome to the Fixed Income Analysis module (INV3702). This module aims to equip
students with a well-rounded and systematic knowledge base on fixed income
securities, including a detailed knowledge of the valuation of fixed income securities
based on interest rate forecasts, investment horizons and risk considerations.
This module builds upon the foundation laid by INV2601 (Introduction to Investments)
and focusses specifically on one of the two major investment asset classes: fixed
income securities. The companion module, INV3701 (Equity Asset Valuation) deals
with the other major asset class: equities. Although they are related, INV3701,
INV3702 and INV3703 can be studied independently. They each offer a closer look
at their respective financial instruments. At Honours level, INV4801 brings together
these aspects and discusses how asset classes are blended in the context of
managing investment portfolios.
This module is part of the Investment series offered by Unisa at third-year level and is
based on the CFA curriculum. The Chartered Financial Analyst® (CFA®) programme
is not offered by Unisa; it is offered by the CFA Institute (in the United States of
America) by means of distance education. Details on the CFA programme may be
obtained from www.cfainstitute.org.
The UNISA Investment series also includes:
• Second-year level
INV2601 (Introduction to Investments)
Purpose: To enable students to gain insight into investment in financial assets; the
investment environment; the risk-return framework; fundamental and technical
analysis; portfolio management.
• Third-year level
INV3701 (Equity Asset Valuation)
,Purpose: To enable students to determine the fair value of a firm's shares based on
economic prospects, current and forecast financial performance as well as risk
assessment.
INV3703 (Derivatives)
Purpose: To enable students to gain insight into risk management with derivatives:
options contracts; futures, and forward contracts, interest rate swops agreements,
future rate agreement; managing the risk of a portfolio.
• Honours level
INV4801 (Portfolio Management)
Purpose: To enhance students' knowledge of portfolio management. To provide an
advanced understanding and analysis of an Investment Policy Statement (IPS), capital
market expectations, asset allocation, fixed income portfolio management, equity
portfolio management, alternative investments portfolio management, and portfolio
performance evaluation.
If you have not studied INV2601, or would like a refresher of the module, you can
access the study guide under Additional Resources. This ensures that all students,
including those from other universities, are on equal footing. Please note that the
INV2601 study guide does not form part of the notional hours for this module. 120
notional hours are recommended for study, revision and assessment of this module.
This is an online module and must be studied via myUnisa. Printed study material will
not be provided. The online study material is presented as a series of lessons. Each
lesson contains reference to the sections of the prescribed book that you need to
study, as well as learning outcomes and activities. Seeing that this is a module at the
exit level of a degree, you are expected to do autonomous reading and make your
own notes to use for revision. The online lessons should be used in conjunction with
the module’s tutorial letters, the prescribed textbook, and the other resources on
myUnisa. Consider getting the e-Book version to save cost. Details of the prescribed
book are as follows.
, Adams, JF & Smith, DJ (2019). Fixed Income Analysis, 4th edition. John Wiley &
Sons Inc., Hoboken, NJ ISBN: 9781119627289
REFERENCES
At the end of each lesson I include a list of references that I consulted in writing this
module. If you would like to know more about a particular section of the work, you are
encouraged to consult the relevant reference work.
Kind regards
Your Lecturers
