FIN 4243 Lecture Notes - Lecture 1: Libor, Interest Rate Risk, Cusip

• School: University of Florida
• Department: Finance, Insurance and Real Estate
• Course: FIN 4243
• Professor: Maxim Dolinsky

Document Summary

Ch1: #1, 2, 4, 5, 12 (important one to understand), 15, 19, 20. : first 6 problems are numbered the same. > a debt instrument requiring the borrower to repay to the lender the amount borrowed plus interest over a specific period of time. 2/3 of the market value of all securities in the world are fixed income securities. > most ppl in the corporate and financial sectors participate in the fixed income securities market. > treasure sector securities issued by the u. s. gov (risk-free) > agency sector securities issued by federally related instituions and gov-sponsored enterprises (fannie mae) > municipal sector securities issued by the state and local governments. > corporate sector securities issued in the us by us corporations and foreign corporations. > asset-backed sector- securities backed by a pool of assets. > mortgage sector securities backed by mortagage loans (residential and commercial) The bond features: type of issuer: there are 3 major issuers of bonds.