24 – 27 September 2019
Learn to compute the present value of future cash flows and the yield to maturity on different types of credit market instruments (bonds) and make the distinction between nominal and real interest rates or fixed and variable ones. Understand how the overall level of interest rates is determined and which factors influence their behavior.
Prof. Marianne Guille
Associate Professor of Economics – Université Paris II Panthéon Assas
Marianne Guille is an associate professor of Economics at Université Paris II Panthéon Assas. Her research focuses on various topics such as money, the financing of defence firms, of R&D and innovation, of education. She has published her research in various prestigious journals such as Defence and Peace Economics, the Journal of Post Keynesian Economics, the Review of Financial Economics, the Revue d’Economie Financière, the Revue Economique, Economie et Prévision or the European Journal of Education.
She is involved in various programs at the Université Panthéon-Assas. She is co-director of the master program in economics, Statistical and Finance Engineering (Master ISF), and has created a very selective and innovative 5-year training in Economics, Quantitative Finance and Statistics (CMI EFiQuaS), she is co-director of this degree.
Professionals will understand exactly what an interest rate is. We will see that a concept known as the yield to maturity is the most accurate measure of interest rate. They will be able to compute the present value of future cash flows and the yield to maturity on different types of credit market instruments (bonds) and make the distinction between nominal and real interest rates or fixed and variable ones. We will then examine how the overall level of interest rates is determined and which factors influence their behavior. Finally, we will look at the sources and causes of fluctuations in interest rates relative to one another, and look at a number of theories that explain these fluctuations. More specifically, we will identify and explain factors explaining the term structure of interest rates and, list and explain theories of why interest rates vary across maturities and risk.
Objectives and Skills Targeted
Participants will be able to compute and explain key variables in finance, banking and portfolio analysis.
Method / Bibliography
- Method: course (12h) and exercises (3h)
- Course materials include slides, exercises and exercises corrections
- Course textbook: “Money Banking and Finance” by Mishkin Chap 4, 5, 6
Time schedule: 3/4 theory and 1/4 practice (various exercises, applications and case studies will be discussed during classes).