Management of Fixed Income Securities

By Prof. Jitendra Mahakud   |   IIT Kharagpur
Learners enrolled: 317
This course provides an overview of valuation and management of various fixed income securities such as bonds, interest rate derivatives, interest rate swaps and credit default swaps. This course introduces the basic feature of various fixed income securities and markets. It presents the various methods used for valuation of bonds, theories related to interest rate determination, measure the alternative risk associated with fixed income securities. Various bond portfolio investments strategies are discussed. Further, various techniques used for valuation of bond with embedded options and estimation of binomial trees are also covered. A thorough discussion on different derivative instruments such as interest rate derivatives, interest rate swaps and credit default swaps are also analyzed.
INTENDED AUDIENCE: MBA Finance, Economics and Commerce

PREREQUISITES: Financial Institutions and Markets

INDUSTRY SUPPORT: Financial Consulting Companies, Investment Firms, Brokerage Houses
Course Status : Completed
Course Type : Elective
Duration : 12 weeks
Category :
  • Humanities and Social Sciences
Credit Points : 3
Level : Postgraduate
Start Date : 25 Jul 2022
End Date : 14 Oct 2022
Enrollment Ends : 08 Aug 2022
Exam Date : 30 Oct 2022 IST

Note: This exam date is subjected to change based on seat availability. You can check final exam date on your hall ticket.

Page Visits

Course layout

Week 1:  Introduction to Fixed Income Securities and Bond Valuation
Week 2: 
Bond Returns and Level of Interest Rate Determination
Week 3: Level and Term Structure of Interest Rates
Week 4: Term Structure of Interest Rates
Week 5: Bond Risks (Interest Rate Risk, Duration, Convexity, Default Risk)
Week 6: Government and Corporate Bond Markets
Week 7: Municipal Bond, Commercial Bank Debt and International Bond Markets
Week 8: Binomial Valuation of Bonds with Embedded Options
Week 9: Estimation of Binomial Trees
Week 10: Bond Investment Strategies
Week 11: Mortgage Backed Securities
Week 12: Fixed Income Derivatives (Futures, options and swaps)

Books and references

  1. Fixed Income Securities: Valuation, Risk and Risk Management by Pietro Veronesi, Wiley India
  2. Bond Markets, Analysis and Strategies by Frank J Fabozzi, Peason India
  3. Bond Evaluation, Selection, and Management, 2e. by Johnson, R. Stafford, John Wiley & Sons, 2010.

Instructor bio

Prof. Jitendra Mahakud

IIT Kharagpur
Jitendra Mahakud is Professor of Economics and Finance at the Department of Humanities and Social Sciences, Indian Institute of Technology Kharagpur. He is also a joint faculty at the Vinod Gupta School of Management, IIT Kharagpur, in the area of finance. He obtained his PhD from the Indian Institute of Technology, Mumbai. He has published more than 50 papers in leading national and international journals. He has co-authored a book titled Financial Institutions and Markets: Structure, Growth and Innovations published by McGraw Hill Education. He has edited two books one on Advances in Research in Business and Finance (Corporate Finance) and the other on Advances in Research in Business and Finance (Investment Management). His areas of teaching and research include financial markets and institutions, corporate finance, investment management, financial economics, behavioural finance and commercial banking.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams: 30 October 2022 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.


Average assignment score = 25% of average of best 8 assignments out of the total 12 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Kharagpur .It will be e-verifiable at nptel.ac.in/noc.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team

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