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FINC71-604: Capital Markets May 2017 [Standard]

General information

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:Capital Markets
Subject level:Postgraduate
Semester/Year:May 2017
Credit points:10

Delivery & attendance

Delivery mode:


Workload items:
  • Lecture: x12 (Total hours: 24) - Weekly Lecture
  • Tutorial: x11 (Total hours: 22) - Weekly Tutorial


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

Enrolment requirements

Requisites: ?


Restrictions: ?


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.

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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.


Assessment details

TypeTask%Timing*Outcomes assessed
*Class Participation n/a 10% Weekly 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.
Paper-based Examination (Open) Final Examination 40% Final Examination Period 1, 2, 3, 4, 5, 6, 7, 8.
  • § Indicates group/teamwork-based assessment
  • * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
  • C = Students must reach a level of competency to successfully complete this assessment.

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.

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.

Subject curriculum

Week 01 01: Overview of a Modern Financial System; Week 02 02: Financial Intermediaries ; Week 03 03: Interest Rate Determination; Week 04 04: Short Term Debt; Week 05 05: Long Term Debt ; Week 06 06: Volatility of Financial Markets; Week 07 07: Concept Test; Week 08 08: Measurement of Risk; Week 09 09: Risk Management: Futures and Forwards; Week 10 10: Introduction and Mechanics of Options Markets; Week 11 11: Risk Management: Swaps; Week 12 12: Regulation and Deregulation; Week 13 REVIEW; Week 14 FINAL EXAM

1, 2, 3, 4, 5, 6, 7, 8.
Approved on: Mar 9, 2017. Edition: 1.1
Last updated: Apr 21, 2017.