SECTION I: Refer essentially to Item 7 and the Handout on Interest Rate Determination. [40 points in
total; each question or sub-question is worth 5 points.]
CHAPTER 3 (Berk/DeMarzo): #s 6, 8, 9, 12 and 15.
3-6.
Suppose the risk-free interest rate is 4%.

Homework #1
Bond Quote
A bond quote is the price at which a bond is trading. A bond quote is typically expressed as a percentage of par
value, with the percentage converted to a point scale. The price that someone is willing to pay for the bond is always

YOUR FULL NAME:
ECON 483B: Economics of Fixed Income Markets
Summer I, 2016
Dr. Charles Sebuharara
GRADED HOMEWORK ASSIGNMENT #2 [60 points]
Due Date: No later than 4:00PM-Eastern Time, on Monday, June 13, 2016.
IMPORTANT NOTES:
1. You should consider wor

YOUR FULL NAME: _
ECON 483B: Economics of Fixed Income Markets
Summer I, 2016
Dr. Charles Sebuharara
GRADED HOMEWORK ASSIGNMENT #2 [60 points]
Due Date: No later than 4:00PM-Eastern Time, on Monday, June 13, 2016.
IMPORTANT NOTES:
1. You should consider w

ECON 483B: ECONOMICS OF FIXED INCOME MARKETS
Summer I, 2016
Dr. Charles Sebuharara
PRACTICE QUESTIONS AND PROBLEMS SET 3 (CLASS SCHEDULE ITEMS 4 AND 5) WITH SOLUTIONS
Note: You are strongly encouraged to attempt answering the questions/problems on your ow

ECON 483B: Economics of Fixed Income Markets
Handout (Supplemental Notes to Chapter 7 of custom text):
Interest Rates Determination: Levels
(Reference: Frederic S. Mishkin, The Economics of Money,
Banking and Financial Markets, Chaps. 3, 5)
Econ of Fixed

ECON 483B: Economics of Fixed Income Markets
Summer I, 2016
Dr. Charles Sebuharara
END-OF-TERM PROJECT [15 points]
Due Date: No later than 11:55PM on WEDNESDAY, June 29, 2016. [15 points]
(Some Final Exam questions may be drawn from this project!).
IMPORT

ECON 483B-01: Economics of Fixed Income Markets
Summer I, 2016
Dr. Charles Sebuharara
GRADED HOMEWORK ASSIGNMENT #3 (Essentially from Items 7, 8, 9, and 10) [100 points in total]
Due Date: No later than 4:00 PM ET, on Monday, June 20, 2016.
IMPORTANT NOTE

ECON 483B: Economics of Fixed Income Markets
Summer I, 2016
Dr. Charles Sebuharara
END-OF-TERM MINI-CASES [15 points]
Due Date: No later than 11:55PM on TUESDAY, June 28, 2016.
(Some Final Exam may come from these mini-cases!).
IMPORTANT NOTES:
1. There a

BINGHAMTON UNIVERSITY State University of New York
, Summer 2016
ECON 483B-01 (CRN: 13961): Economics of Fixed Income Markets
Term
Summer 2016
(May 31 July 01)
Instructor
Dr. Charles R. Sebuharara
Email
rsebuhar@binghamton.edu
or
crsebu@binghamton.edu
Off

ECON 483B: Econ of Fixed Income Markets, Sum2014
Charles R. Sebuharara
US Treasury Term Structure of Interest Rates and Yield Curve
U.S. Treasury Yield Curve Rates
1 mo
3 mo
6 mo
1 yr
2 yr
3 yr
5 yr
7 yr
10 yr
20 yr
30 yr
10/1/2013 10/11/2013
0.10
0.25
0.

ECON 483B: ECONOMICS OF FIXED INCOME MARKET
Dr. Charles Sebuharara
HOMEWORK ASSIGNMENT #1 (20 Points) Due No Later than 4PM on Thursday, June 2, 2016 (See
syllabus for submission instructions)
ASSIGNMENT:
1. Watch each of the following two YouTube videos:

ECON 483B-01: Economics of Fixed Income Markets
Summer I, 2016
Dr. Charles Sebuharara
GRADED HOMEWORK ASSIGNMENT #3 (Essentially from Items 7, 8, 9, and 10) [100 points in total]
Due Date: No later than 4:00 PM ET, on Monday, June 20, 2016.
IMPORTANT NOTE