Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Sachi Purcal
Contact via Please refer to iLearn
Deanna Tracy
|
---|---|
Credit points |
Credit points
10
|
Prerequisites |
Prerequisites
50cp at 1000 level or above including [(ACST101 or ACST1001) and (STAT150 or STAT1250 or STAT170 or STAT1170 or STAT171 or STAT1371)]
|
Corequisites |
Corequisites
|
Co-badged status |
Co-badged status
|
Unit description |
Unit description
This unit explores some basic concepts of finance, in particular: price; yield; the relationship between price and yield; interest rate risk; reinvestment risk; duration and its uses; volatility; the contingent payments approach; arbitrage pricing theory; pricing forwards; futures and options. To achieve understanding, this unit uses financial mathematics (the techniques learned in ACST1001 are developed further here) to analyse transactions involving commonly used financial instruments in the context of the markets in which they are traded. At the same time, students develop skills in solving problems; in explaining financial ideas in simple language; in constructing spreadsheet models; and in working as part of a team. A range of assessment tasks are provided, some to generate feedback on how well the understanding and skills are developing, and others to determine the standard of understanding and skills attained. |
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment marks (not including the final exam mark) will not be addressed.
Unless a Special Consideration request has been submitted and approved, no extensions will be granted. There will be a deduction of 10% of the total available assessment-task marks made from the total awarded mark for each 24-hour period or part thereof that the submission is late. Late submissions will only be accepted up to 96 hours after the due date and time.
No late submissions will be accepted for timed assessments – e.g., quizzes, online tests.
Table 1: Penalty calculation based on submission time
Submission time after the due date (including weekends) |
Penalty (% of available assessment task mark) |
Example: for a non-timed assessment task marked out of 30 |
< 24 hours |
10% |
10% x 30 marks = 3-mark deduction |
24-48 hours |
20% |
20% x 30 marks = 6-mark deduction |
48-72 hours |
30% |
30% x 30 marks = 9-mark deduction |
72-96 hours |
40% |
40% x 30 marks = 12-mark deduction |
> 96 hours |
100% |
Assignment won’t be accepted |
To request an extension on the due date/time for a timed or non-timed assessment task, you must submit a Special Consideration application. An application for Special Consideration does not guarantee approval.
The approved extension date for a student becomes the new due date for that student. The late submission penalties above then apply as of the new due date.
Where a Special Consideration application is approved, the student may be offered an alternative assessment or may receive a mark based on the percentage mark achieved by the student in one or more other assessment tasks, at the Unit Convenor’s discretion.
Name | Weighting | Hurdle | Due |
---|---|---|---|
Take-home Quizzes | 20% | No | 15/3/22 10/5/22 |
Spreadsheet Project Task | 20% | No | 3/5/22 |
Final Exam | 60% | No | Exam period |
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 20 hours
Due: 15/3/22 10/5/22
Weighting: 20%
You will use the quiz links on iLearn to complete two take-home quizzes.
Assessment Type 1: Quantitative analysis task
Indicative Time on Task 2: 20 hours
Due: 3/5/22
Weighting: 20%
There are two components (an individual task and a group spreadsheet task). You will need to submit the tasks via iLearn.
Assessment Type 1: Examination
Indicative Time on Task 2: 28 hours
Due: Exam period
Weighting: 60%
The final examination will be a two-hour written paper with ten minutes reading time, to be held during the University Examination period.
1 If you need help with your assignment, please contact:
2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation
Lectures will be held on campus—please refer to the timetable or eStudent for class details. If you have registered to attend the online lecture, please note that there is no real-time live online class. A lecture recording will be available to students after the on-campus lecture is held.
Tutorials will be held in week 01, and then in weeks 06 to 13, inclusive. Practical classes will only be held in weeks 02 to 05. Tutorials and practicals never run concurrently—in any week, you attend either a tutorial or practical, but never both.
You may use a calculator in the class tests and at the final exam provided that it is portable, silent and battery operated, but you must show clearly the steps involved in every calculation. In the final exam you may NOT use any calculators that have a text-retrieval capacity, whether or not they have a full alphabet on the keyboard. Calculators may be checked at the commencement of the final exam, and the make/model may be recorded.
Many of the problems you will encounter in this unit can be solved easily with the spreadsheet program, Excel. You can use this spreadsheet program to verify your solutions to many of the problems you are solving. You will need to use Excel to do the Group Spreadsheet Project.
Week 01: Simple interest and short-term financial instruments, compound interest and bonds.
Weeks 02–03: Short-term financial instruments and bond prices.
Week 04: Bond prices, bond yields and zero coupon bonds.
Week 05: Re-investment risk and TRCY
Week 06: Horizon analysis.
Week 07: Horizon analysis, bond duration.
Mid-semester break.
Week 08: Bond duration.
Weeks 09-10: Contingent payments, forward contracts.
Week 11: Forward contracts.
Week 12: Option pricing.
Week 13: Revision.
Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:
Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
The Writing Centre provides resources to develop your English language proficiency, academic writing, and communication skills.
The Library provides online and face to face support to help you find and use relevant information resources.
Macquarie University offers a range of Student Support Services including:
Got a question? Ask us via AskMQ, or contact Service Connect.
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Unit information based on version 2022.04 of the Handbook