Assignment

Overview of Research Project 

Choose one of the topics that we have covered in this course that you would like to learn more about. This can include any of the topics from the textbook or course modules. In addition, your research paper should include contact/interview with someone in the industry. 

Paper Format

• Use introduction, body paragraph, and conclusion headings

• Your paper should be 5 pages in length (not including cover and reference pages)

• At least 5 references of an academic or scholarly source are required for this paper.  You are expected to use academic sources in peer-reviewed database or Internet sources, such as: “.org”, “.edu”, “.mil”, “.gov”, ".zm"  Sources not allowed are Wikipedia, Dictionaries, wikis, or blogs.

• Use APA, 6th edition, writing style for in-text citations and each reference source that you use.  Remember, all wording that is not your own must be cited.

  • For APA writing assistance, select “APA Format Resources” on the Begin Here section of the Modules Tab

• Limit the use of direct quotes. Direct quotes should not exceed ½ page in total.  Deductions will result if this rule is violated.

• Use 12-point Times New Roman font, 1-inch margins, and double-spacing.

• The cover sheet should include group member’s names and course information

• Include a reference page in APA 6th edition style.

PROPOSED TOPIC: MODULE 2 ON TREASURY MANAGEMENT FUNCTION

Welcome to Module 2! During this Module, we will focus on the Treasury Management function. Interest rates are a factor in the valuation of virtually all derivatives and will feature
prominently in much of the material that will be presented in the rest of this book. This chapter deals with some fundamental issues concerned with the way interest rates are measured and analyzed. It explains the compounding frequency used to define an interest rate and the meaning of continuously compounded interest rates, which are used extensively in the analysis of derivatives. It covers zero rates, par yields, and yield curves, discusses bond pricing, and outlines a ‘‘bootstrap’’ procedure commonly used by a derivatives trading desk to calculate zero-coupon Treasury interest rates. It also covers forward rates and forward rate agreements and reviews different theories of the term structure of interest rates. Finally, it explains the use of duration and convexity measures to determine the sensitivity of bond prices to interest rate changes.

Learning Objectives

Upon successful completion of this module, you will be able to:

1. Discuss the differences between the LIBOR rate and the treasury rate

2.  Analyze how compounding impacts investments

3. Discuss how interest rates are quoted