BUS614: International Finance

Here, you will learn about determining interest rates and how supply and demand play a role in determining interest rates. Pay attention to the Fed's role in this determination and to the effects of the increase of money supply on interest rates. What are the determinants of interest rates?

When investing in bonds, understanding their yield is of utmost importance. They reflect the length and interest to be paid to the investor. Here you will learn why yields are indicative of investors' expectations. How would you estimate interest rates in the future using the yield curve?

Here you will understand the relationship between money markets and interest rates. You will also come to learn how real GDP has an effect on the demand for money. What effect does interest rate have on the demand for money?

We have discussed the role of supply and demand in the money market, and we have seen how it has an effect on interest rates as well. Here, you will learn how transfer costs and expectations can affect demand. What is Keynes' theory with regard to the relationship between investment in bonds and money?

As you have already learned, bonds are used to finance specific projects or operations of the issuer. Through these bonds, the issuer is obligated to make payments on the bond in the future. But what determines the bond's price, and what determines the interest paid?

Along with bonds, some investors may consider investing in foreign currency. While doing so, there are a few determinants of what rate currencies will be exchanged. What are these?

This reference will provide you with detailed information on the different bonds and bond issuers. Pay close attention to those issued by corporations. When and why would a corporation issue bonds with covenants?

Here, you will learn more about the different types of bonds, from zero-coupon bonds to Yankee bonds. What is the relationship between bonds and interest rates?