NATIONAL ECONOMICS UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

SCHOOL FOR ADVANCED EDUCATIONAL PROGRAMS Independence – Freedom – Happiness

SYLLABUS

1. GENERAL INFORMATION
Title: Capital Markets (FIN360)
Course number: Fin360
Finance major courses
Units: 3 credits
- Theoretical hours: 30
- Practical hours: 15
Prerequisite: Business Finance.

2. LECTURER’S INFORMATION
Full name: Đang Anh Tuan, PhD. Title: Senior Lecturer

Office address: Room 909, A1 Building, National Economics University

Phone number: 0983 664 485

Email: tuanda@neu.edu.vn

Faculty/ Institute: School of Banking and Finance

3. COURSE DESCRIPTIONS
This course is an introduction to interest rates, financial intermediaries and financial markets.
We will first cover the fundamentals of financial system, and interest rates. Then we will consider
the role of financial intermediaries and central banks. We will discuss monetary policy and
operations of foreign exchange. We will look at both domestic and international perspectives of
money, banking and financial markets.

Main topics will be covered as follows:

1. Introduction to the financial system;

2. Determination of interest rates, structures of interest rate;
3. Financial markets: stock, bond, future and foreign exchange markets
4. Operation and the management of banks and other non-bank institutions;
5. Basics of monetary policy and the operation of central bank;

1
4. LEARNING RESOURCES : COURSE BOOKS, REFERENCE BOOKS, AND
SOFTWARES
- Course book: Mishkin, Frederic S., The Economics of Money, Banking, and Financial
Markets. 11ed, 2016.

Web: https://media.pearsoncmg.com/intl/global/ema_ge_mishkin_econmbfm_11/index.html

- Use online database from lic.neu.edu.vn

Davidson Alexander (2008), How to understand the financial pages: a guide to money and the
jagon, Kogan Page Ltd. (Subject: Business&Economics/Finance/General).

5. COURSE GOALS
The study of financial system is about its operations and principles of these operations. This
course is designed to cover major parts of financial system including market, banks and other
financial institutions, interest rate, exchange rate, central bank and monetary policy and the theory
of financial structure. This course emphasizes the core competencies of written and spoken
discourse, teamwork, argumentation, and problem solving.
Program
Course Learning Level of
Goal Description
Goals Outcomes competence
(PLO)
[1] [2] [3] [4]
Understanding structure of financial system, financial
G1 1.1 II
markets and the role of players in financial system
Understand different types of interest rate
G2 Explain behavior of interest rate 1.1 III
Analyse structures of interest rate
Understand the pricing of stock, derivative securities;
G3 1.1 III
explain behavior of exchange rate
Understand the operation and the management of
G4 1.2 III
banks and other non-bank institutions
Understand tools and implementation of monetary
G5 policy, money supply process and the operation of 1.1 III
central bank

6. COURSE LEARNING OUTCOMES (CLO)

Course Level of
CLO Descriptions
goals competence
[1] [2] [3] [4]
G1 Understanding flows of funds and structure of II
CLO 1.1
financial system, role of players in financial system
CLO 1.2 Understanding structures of financial market II
Explain the characters of money and capital market II
CLO 1.3
instruments
CLO 1.4 Understand the roles and basic operations of II
2
 financial intermediaries
Understand different types of interest rate: coupon, III
CLO 2.1
yield to maturity, interest rate calculation
Differentiate real and nominal interest rate; interest III
CLO 2.2
rate and return
G2
CLO 2.3 Calculate bond price and explain bond duration III
CLO 2.4 Show how interest rates are determined and varied III
CLO 2.5 Analyse structures of interest rate III
CLO 3.1 Describe methods to price stocks III
Explain concepts of derivative securities and III
CLO 3.2
G3 calculate the payoff of future and option contracts
Explain behavior of long term and short-term III
CLO 3.3
exchange rate
Describe banks’ operations and principles of bank III
CLO 4.1
G4 management
CLO 4.2 Understand the operation of non-bank institutions III
Explain the money supply process and III
CLO 5.1
determinants of money supply
Explain the structure and functions of central III
CLO 5.2
bank- the FED
G5 CLO 5.3 Describe the goals, tools and the conduct of III
monetary policy
CLO 5.4 Differentiate monetary policy strategies: inflation III
targeting, interest rate targeting, monetary
targeting

7. COURSE ASSESSMENT

Assessment Assessment Percentage

Description Time CLO
methods indicators (%)

[1] [2] [3] [4] [5] [6]

Attendance
points
Class participation points
&
Class will be based on general Week 1-
Times of 10%
Participation class attendance, 13
contribution in class answers and
questions in
class.
Midterm 60 minutes, closed book Week 7 1.1, 1.2, short 20%
3
 1.3, 1.4,
2.1, 2.2,
answer,
exam 2.3, 2.4,
problems
2.5, 3.1,
3.2
Every student will write an
1.1, 1.4,
individual term paper. The Week 8- Rubrics for
Term paper 4.1, 4.2, 20%
papers need to be submitted 12 term paper
5.3, 5.4
through Turnitin
Final exam of 90 minutes.
Students have permission to
take the final exam when 3.3, 4.1, Questions
they attend more than 80% University 4.2, 5.1, on theories,
Final Exam 50%
of the total classes and hand schedule 5.2, 5.3, problems,
in group assignments on 5.4 case studies.
time. Make-up exams will
not be offered.
8. LESSON PLAN
8.1. Theoretical hours
Learning and teaching Assessment
Class Topics CLO
activities methods
[1] [2] [3] [4] [5]
Chapter 0 Textbook, chapter 1+2;
Introduction to the Read carefully the syllabus
Course and TURNITIN 1.1, 1.2, provided;
Week 1
Overview of the 1.3, 1.4 Assign members into groups;
Financial System Watch video: How the
economic machine works?
Chapter Understanding
2.1, 2.2, Textbook, chapter 4; Problems
Week 2 interest rate
2.3

Interest rate behavior Textbook, chapter 5; Problems

Week 3 2.4

Chapter Risk and

Textbook, Chapter 6;
Term Structure of
Week 4 2.5 Problems
Interest Rates

Week 5 Chapter Stock Market 3.1 Textbook, chapter 7

Chapter on the Web
Week 6 Financial Derivativs 3.2 Problems

Week 7 Midterm Exam 4.1 Chapter 9; Problems

4
 Commercial Bank
Operations
Week 8 Commercial Bank
4.1 Chapter 9; Problems
Management
Nonbank finance Chapter on the Web 2
Week 9 4.2, 5.2
Central Bank Chapter 3+14
Week
10 Money Supply Process 5.1, Chapter 15

Week Monetary Tools and

5.3, 5.4 Chapter 16+17
11 Strategies
Week Foreign Exchange
12 3.3 Chapter 18+Appendix
Market
Week
13 Review Chapter 1+2

8.2. Practical hours

Learning and teaching Assessment
Class Topics CLO
activities methods
[1] [2] [3] [4] [5]
1.1, 1.2,
Week 1 Chapter 2 Video + discussion:
1.3, 1.4
Case study Discussion;
2.1, 2.2,
Week 2 Chapter 4 Problems
2.3
Davidson, Part 1.1, 1.2
Problems
Week 3 Chapter 5 2.4
Davidson, Part 2.B
Week 4 Chapter 6 2.5 Case study; Reading; Problems
Reading and discussion;
Week 5 Chapter 7 3.1
Problems
Chapter on the Web
Week 6 3.2 Problems
Financial Derivativs
Week 7 Chapter 9 4.1 Problems
Week 8 Chapter 9 4.1 Problems
Chapter on the Web + 4.2, 5.1,
Week 9 Problems;
3, 14 5.2
Week 4.2, 5.1,
Chapter 15 Problems;
10 5.2
Week Chapter 16, 17 5.3, 5.4 Problems;

5
11
Week
Chapter 18 3.3 Problems;
12
Week
Review
13
9. COURSE REQUIREMENT & EXPECTATION
Assignment and Exam
There are 1 individual term paper (2.500 words), 1 midterm and 1 final exam. Final exam of 90
minutes accounts for 50% of the total grade. Students have permission to take the final exam when
they attend more than 80% of the total classes and submit termpaper on Turnitin class. Make-up
exams will not be offered. Midterm and Final Exam is a closed-book exam, so students can not use
notes, books or other paper materials. However, students can use 1 A4 hand writen formula page.
Late Assignments
All assignments are due by the date and time specified in the assignment. Late assignments will be
penalized 10% per calendar day (not merely per class period) beginning with the due date. After
three late days, acceptance of the assignment is at my discretion. No extensions, no exceptions. It is
your responsibility to know the due dates and to plan accordingly.
Class Participation
Class participation points will be based on general common guides to assess class participation
governed by The Center.
Communication:
I encourage discussion with me. You can communicate during office hours, email or in class
discussions. You also are welcome to make separate appointments. I will be available after class,
but only for short questions. I also encourage feedback on the classes, lectures, teaching and
reading material.
All materials presented in class lectures including PowerPoint presentations and those materials
given are intellectual property of the instructor unless otherwise copyrighted. Any reproduction or
publication of this material without prior written permission is strictly forbidden.
10. DATED: ……………………..
SCHOOL FOR ADVANCED FACULTY LECTURER
EDUCATIONAL PROGRAMS