333-101 Finance 1

Students who have completed 333-201 Business Finance will not be permitted to enrol in this subject.

This subject introduces students to finance and provides them with fundamental principles and institutional knowledge to progress in the discipline. Topics include direct financing and security yields, banking and the money market, the bond and equity markets, offshore finance and foreign exchange, the behaviour of financial variables, interest rate risk management and derivative securities. These topics will be used to illustrate fundamental financial concepts such as risk, return, and present value.

• High level of development: interpretation and analysis; critical thinking; synthesis of data and other information; accessing data and other information from a range of sources.

• Moderate level of development: oral communication; written communication; problem solving; statistical reasoning; application of theory to practice; evaluation of data and other information.

• Some level of development: collaborative learning; team work; use of computer software.

Assignments not exceeding 2000 words (20%) and a 2-hour end-of-semester examination (80%). To pass this subject, students must pass the end-of-semester examination.

• B Hunt and C Terry, Financial Institutions and Markets. (4th edn), Nelson, Melbourne, 2004.