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Capital Markets


This subject introduces students to the mechanics of financial markets and institutions. The emphasis is on how markets work, how instruments are priced and how they are traded. The subject covers the evolution of financial institutions both in Australia and internationally, their roles and response to regulations and deregulation. The subject also considers the types and functions of financial intermediaries.

  • Academic unit: Bond Business School
    Subject code: FINC71-604
    Subject title: FINC71-604: Capital Markets
    Subject level: Postgraduate
    Semester/Year: May 2017
    Credit points: 10.000
  • Timetable:
    Delivery mode: Standard
    Workload items:
    • Lecture: x12 () - Weekly Lecture
    • Tutorial: x11 () - Weekly Tutorial
    Attendance and learning activities:
  • Prescribed resources:


    • Christopher Viney,Peter John Phillips (2015). Financial Institutions, Instruments and Markets. 7th, Australia North Ryde, NSW McGraw-Hill Australia
    • David S. Kidwell,Mark Brimble,Liam J. A. Lenten,Anup Basu,Paul Docherty,Paul Mazzola (2014). Financial Markets, Institutions and Money. 3rd, United States McGraw-Hill Education


    After enrolment, students can check the Books and Tools area in iLearn for the full Resource List.
    [email protected] & Email: [email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.

    To access these services, log on to the Student Portal from the Bond University website as

Academic unit: Bond Business School
Subject code: FINC71-604
Subject title: FINC71-604: Capital Markets
Subject level: Postgraduate
Semester/Year: May 2017
Credit points: 10.000

Enrolment requirements



Assumed knowledge:

Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.

Assumed Prior Learning (or equivalent):


Assurance of learning

Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.

At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.

Program Learning Outcomes (PLOs)

Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.

Find your program

Subject Learning Outcomes (SLOs)

On successful completion of this subject the learner will be able to:

  1. Discuss the main participants in the Australian financial system and their roles.
  2. Explain the main features of a modern financial system, with particular emphasis on the role of financial intermediaries.
  3. Explain the structure and purpose of both the public and private equity markets.
  4. Describe the characteristics of different types of debt securities and be able to price them.
  5. Describe different theories of interest rate determination and explain the relationship between term to maturity, risk and interest rates.
  6. Discuss the advantages and disadvantages of different measures of investment risk, and how the distribution of returns influences the assessment of risk.
  7. Understand the nature and importance of risk management, with particular reference to the use of futures, forwards and swaps in managing specific risk exposures.
  8. Describe the role of regulatory authorities in regulating how financial intermediaries manage their capital, and discuss the recent changes in international regulation on capital adequacy.
  • Type Task % Timing Outcomes assessed
    Paper-based Examination (Open) Final Examination 40% Final Examination Period 1,2,3,4,5,6,7,8
    *In-Class Quiz - Individual Concept Test 30% Week 6 1,2,3,4,5,6,7,8
    Essay Group Assignment 20% Week 10 1,2,3,4,5,6,7,8
    *Class Participation n/a 10% Weekly 8
  • Assessment criteria

    High Distinction 85-100 Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.
    Distinction 75-84 Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.
    Credit 65-74 Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.
    Pass 50-64 Usually awarded to students whose performance meets the requirements set for work provided for assessment.
    Fail 0-49 Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.

    Quality assurance

    For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.

Type Task % Timing Outcomes assessed
Paper-based Examination (Open) Final Examination 40% Final Examination Period 1,2,3,4,5,6,7,8
*In-Class Quiz - Individual Concept Test 30% Week 6 1,2,3,4,5,6,7,8
Essay Group Assignment 20% Week 10 1,2,3,4,5,6,7,8
*Class Participation n/a 10% Weekly 8

Study Information

Submission procedures

Students must check the [email protected] subject site for detailed assessment information and submission procedures.

Policy on late submission and extensions

A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.

Policy on plagiarism

University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.

Bond University utilises Originality Reporting software to inform academic integrity.

Feedback on assessment

Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.

Accessibility and Inclusion Support

If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.

Additional subject information

Subject curriculum