Course Content
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Introduction
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Hedging Foreign Exchange Exposure
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Hedging Interest Rate Exposure
- Interest rate risk
- Hedging short term interest rate risk
- Hedging long term interest rate risk
- Relationship between bond prices and interest rates
- Effect of interest rate risk on bond yields
- Bond prices changes by maturity
- Yield curve
- Interest rate swaps
- Hedging interest rate shift using interest rate swaps
- Quiz
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Summative Assessment
Next
Forward contract