CHAPTER 1: Interest Rates and Time Value Of Money 

  • Introduction;
  • Factors affecting the level of interest rate;
  • Impact and classification of interest rate and Present value,
  • Future value and Discount factor.

CHAPTER: 2 Money and Fixed Income Markets 

  • Money markets and Fixed income markets.

CHAPTER 3: Government Bonds 

  • Introduction to and Characteristics of Bonds;
  • Concept of yield;
  • Relationship between bond price and interest rate;
  • Repo and cost of funding and other bond terminology.
CHAPTER 4: Interest Rate Derivative
  • OTC Derivatives; Exchange traded contracts and key terminology of futures

CHAPTER 5: Interest Rate Futures (IRF) in India 

  • Interest rate futures;
  • Rationale;
  • Contract specifications;
  • Settlement and Risk Management.

CHAPTER 6: An Explanation of Key Concepts in IRF 

  • Why a notional bond is being used as underlying;
  • Conversion factor;
  • Invoice price;
  • Cheapest to deliver bond;
  • Bond basis.

CHAPTER 7: Applications and Trading of Interest Rate Futures 

  • Participants in the IRF market;
  • Hedging applications of interest rate derivatives;
  • Speculation and Arbitrage strategy.