Interest Rate Determination and Debt Pricing

Course Outline

Interest Rate Determination and Debt Pricing

• The theory and structure of interest rates
• Valuation of debt contracts and their price volatility characteristics
• The term structure of interest rates

Target audience

• Financial regulators
• Individual and institutional investors and borrowers.
• Those who wish to understand financial product innovation with an emphasis on risk management and regulatory reform.
• Those who wish to understand the wide range of instruments for financing, investing, and controlling risk in today’s financial markets.

Learning outcomes

Upon completion of this course, you will be able to understand:

• The classical theory of interest rates, and how all other interest rates differ from it.
• How debt obligations should be priced in the market, and how to determine the calculation of a bond’s yield.
• The relationship between the yield on a bond and its maturity, referred to as the term structure of interest rates.