MTH402 Fixed Income Securities

2023-2024 Semester 2
Final Project Instruction

Project Brief:
Fixed income securities are a broad class of very liquid and highly traded
debt instruments, consisting of a large part of modern nancial markets.
Fixed income securities can be issued by companies and government
entities and can take many forms. The primary aim of this project is to help
students to improve the understanding the knowledge on xed income
securities and reinforce the the analytical skills in the module.

The Student is expected to submit a report that relates to (but not

limited to) the following topics:
• The interactions between the performance of xed income securities and
policies;
• The three-factor a ne term models;
• Pricing the derivatives of xed income securities;
• Risk management based on xed income securities;
• Monte Carlo methods for the evaluation of xed income securities.

The report should include

• Su cient background explanation with references that justi es and places
the research question(s) into context.
• A complete description of the sample, variables and data collection
methods if any.
• Presentation of the primary analysis and all follow-up analyses.
• Interpret the nance models and statistical methods employed for your
study
• Discussion of the ndings
• All programming code with proper explanations and statistical outputs in
an appendix.
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Submission

• Minimum 3000 words (not including reference list, not including abstract,
tables etc.); please be kindly well noted that this is only the minimum
requirement.
• Please do keep the reference style consistent in the same report; the
references should be listed by numbers.
• Please make sure to write as professional in academics as possible.
• Submission deadline: 4pm May 17 2024
• The project accounts form 60% of the nal mark.
• The Final report should be uploaded to LearningMall Turnitin system.

Failure to submit the paper by the speci ed deadline without written medical
reasons or other valid reasons given in writing prior to the deadline (applying
for mitigating circumstances) will normally result in a mark of zero being
recorded. University Coursework Late submission Policy will Apply.

Students must not plagiarise. Plagiarism is a form of cheating. All work

written by others must be cited clearly and unambiguously. All internet
references must be cited accurately. Guidance will be given by the tutor and
if in any doubt students must discuss matters concerning referencing with
the tutor. Student’s work may be subject to checking using plagiarism
software. This can check for collaboration between students and copying
and pasting from sources via the web (including PDFs, e-books and journal
articles).

Marking Scheme for the Report

Marks are not given for the quality of presentation. Submissions should be of
a good quality, as would be expected in a professional environment. Papers
with typographical errors, weak structure and very poor grammar will receive
lower marks as this reduce understanding.
Final Report Max Point
Academic Content

Introduction 5

Literature review: scope, quantity and 10

relevance of studied material.

Methodology and methods: quality and 10

relevance of content

Evidence of understanding 20
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Final Report Max Point
Own calculations and/or independent work, 15
reading and thinking, originality of treatment

Innovation or Creativity/Original Ideas 5

Conclusion 10

Reference and appendix 10

Written Presentation

Clarity of presentation, ease of reading and 10

style, report structure, organisation of the
report

Grammar and spelling 5

Total Marks for Final Report 100