UNIVERSITY OF TENNESSEE - MARTIN
              INT'L BUSINESS, FINANCE, ECONOMICS AND MARKITING
                            SCHOOL OF BUSINESS ADMINISTRATION

 Dr. Mahmoud M. Haddad

The study of finance dose not seem to require any specialized gifts of an unusually high order. Is it not, intellectually regarded, a very easy subject compared with the higher branches of philosophy or pure science? An easy subject, at which very few excel! --John Maynard Keynes

Course Syllabus
Course Number: Finance 720
Course Title: Financial Institutions and Markets
Term, Level, and Credit: Summer 1999, Graduate Course, 3 Semester Hours
Course Description: Basic investment concepts, investment theory, fundamental analysis, investment timing, stocks, mutual funds, bonds, options, commodities, and real estate.
Course Prerequisites: SUCCESSFUL COMPLETION of Finance 301, 710 or Instructor's approval.
Course Text and Required Materials:Capital Markets:  Institutions and Instruments, Second Edition, by, Frank Fabozzi and Franco Modigliani

Course Description:
This course will focus on analysis of American financial system, description and history of
American financial cycles, theories and history of interest rates, fixed income markets, equity
markets,  and international financial markets. It will focus on commercial bank management.

Additional Readings:
1. The Wall Street Journal-Required
2. Barrons
3. Fortune

Cases:
There will be several case studies assigned.  Due dates, etc. will be forthcoming.  The cases will
be applications of the concepts and techniques covered in the course.

No incomplete will be given except under the most extreme circumstances.  The letter grades will
be assigned on a 90-80-70 scale.

Note:  The lecture will emphasize the most important and/or difficult material.  The lectures will
complement the supplement text material.  Appendices will be covered unless otherwise specified.

Course Requirements:
There will be two exams consisting of problems and short answer essay questions. The dates for the exams will be determained at a later date; the exact chapters to be covered on each exam may vary from those listed on the course outline. Material for the exams will come from the text and class material. The exam problems will be similar to the problems covered in class. The final exam will cover the last one half of the class material and the text chapters as well as selected topics from the first and second exams.
Students are required to complete and turn in one project during the term. This project is designed to give students some experience in applying material covered in class. Exact assignments and due dates will be announced during the semester. The project must be typed and double spaced. Handwritten projects will not be accepted. Every two weeks students will turn in a one page summary of the current financial market conditions (from the Wall Street Journal.).  Late projects will be reduced in grade. Details will be given during the semester.

Letter grades will be assigned based on the weighted average of the scores for exams and projects using the following weights:

Grading:
The scores will be averaged based on the following weights:

EXAM 1                     30%
Final                            30%
PROJECTS                30%
Class participation     10%
                                   100%

If an exam must be missed, the student must give notice prior to the exam. The weight of the missed exam will be added to the weight of the final exam. Any exam missed without notice before the exam date will receive a score of zero and the student will receive a failing grade for the course. There will be no extra credit projects. There will be no incomplete given (except under the most severe circumstances.)



Instructor: Dr. Mahmoud M. Haddad
Office Location: Business Administration Building, Room 24
Office Telephone: (901) 587-7249
Office Fax: (901) 587-7241
Office Hours: 2:30-4:30 PM, M. W.
Email: mhaddad@utm.edu
URL: http://www.utm.edu/~mhaddad

Tentative Course Schedule
Capital Markets:  Institutions and Instruments
Second Edition
Frank Fabozzi and Franco Modigliani

Chapter                  Topic
    1                            Introduction
    2                            Overview of Market Participants and Financial Innovation
    3                            Depository Institutions
    4                            Nondepository Institutions
    5                            Investment Banking Firms
    6                            The Primary Markets
    7                            Secondary Markets
    8                            Risk and Return Theories: I
    9                            Risk and Return Theories: II
    10                          Introduction to Financial Futures Markets
    11                          Introduction to Options Markets
    12                          Introduction to the Swaps, Caps, and Floors Markets
    13                          Common Stock Market
    14                          Stock Options Market
    15                          Stock Index Derivative Markets
***** EXAM 1 *****
    16                          The Theory and Structure of Interest Rates
    17                          Valuation of Debt Contracts and Their Price Volatility Characteristics
    18                          The Term Structure of Interest Rates
    19                          Money Markets
    20                          Treasury and Agency Securities Markets
    21                          Corporate Bond Market
    22                          Medium-Term Note, Bank Loan, and Preferred Stock Markets
    23                          Municipal Securities Market
    24                          The Mortgage Market
    25                          The Market for Mortgage Pass-Through Securities
    26                          The Market for Collateralized Mortgage Obligations
    27                          The Market for Asset-Backed Securities
    28                          Exchange-Traded Interest Rate Futures and Options
    29                          Over-the-Counter Interest Rate Derivative Markets
    30                          Foreign Exchange Market
    31                          Instruments for Controlling Foreign-Exchange Risk
***** FINAL EXAM *****