Interest Rate Derivatives: A Beginner’s Module (Foundation)
The Interest Rate Derivatives: A Beginner’s Module (Foundation) certificate examination is designed for a better understanding of the concepts underlying the money market and giving insights into the motives of and operations related to the trading of interest rate derivatives. We live in a world where interest rate risk management is becoming increasingly important not just for the financial sector, but for the household sectors as well. Interest rate derivative products are the primary instruments available to manage such risks. So, let’s learn more about it:
Advantages of NSE’s Certifications
NSE intends to skill the candidate in their preferred course m. NSE analysis the practical knowledge and skills of the candidates. Comprehensive modules are introduced by NSE that cover different areas of Finance and Commerce.
- A Good Start for a Career: NSE certifications accelerate candidates’ growth and provide knowledge and money both. Gaining practical knowledge is also significant and Mandatory, while studying for the certifications of the exam, as per that knowledge the candidates will also understand related concepts that will help better the skills of the candidates.
- Good earnings with Growth: A job with a good income is desired by every individual. NSE certifications provide exclusive eligibility to trade in mutual funds and give the candidate proper knowledge of the risk involved and earnings.
- Increases Hiring Opportunities: The competition in the department like Commerce, Finance and banking is always on a higher level. All the firms are interested in the candidates who give the best output to the firm. NSE certifications increase hiring opportunities as well.
Who will be benefit from this course?
- Students
- Teachers
- Employees of Banks, Insurance Companies”
- Primary Dealers
- Employees of Brokers/Sub-Brokers
- Anybody having interest in the Indian money market
Why should one take this course?
- To understand the concept of money market
- To understand the interest rate derivatives as a risk management tool
Prerequisite for the exam
There are no prerequisites required for Interest Rate Derivatives: A Beginner’s Module (Foundation) Practice Exam.
Exam Overview
The Interest Rate Derivatives: A Beginner’s Module (Foundation) examination has 60 questions which you need to answer in 120 minutes. It advised finishing your examination in 90 minutes so that you have 30 minutes for revision. Also, the questions are in multiple-choice and multi-response format. To clear the examination, you need to atleast get 50% marks. This certification is valid for 5 years and it will cost you INR 2006.
Course Outline
The Interest Rate Derivatives: A Beginner’s Module (Foundation) examnation covers the following topics:
Interest Rates and Time Value Of Money
- Introduction; Factors affecting the level of interest rate; Impact and classification of interest rate and Present value, Future value and Discount factor.
Money and Fixed Income Markets
- Money markets and fixed income markets.
Government Bonds
- Introduction to and Characteristics of Bonds; Concept of yield; Relationship between bond price and interest rate; Repo and cost of funding and other bond terminology.
Interest Rate Derivatives
- OTC Derivatives; Exchange traded contracts and key terminology of futures market.
Interest Rate Futures (IRF) in India
- Interest rate futures; Rationale; Contract specifications; Settlement and Risk Management.
An Explanation of Key Concepts in IRF
- Why a notional bond is being used as underlying; Conversion factor; Invoice price; Cheapest to deliver bond; Bond basis.
Applications and Trading of Interest Rate Future
- Participants in the IRF market; hedging applications of interest rate derivatives; Speculation and Arbitrage strategy
For more information, click on Interest Rate Derivatives: A Beginner’s Module (Foundation) FAQ.
Preparatory Guide for Interest Rate Derivatives: A Beginner’s Module (Foundation)
When it comes to any examination, you need a structured study guide and plan to ace the examination. To help you in your preparation, we have prepared a guide to which you can refer to. Furthermore, following this preparation guide will help you learn and understand every exam’s objectives. Here we are providing you with the best learning resources to qualify for the exam. Moreover, here we are going to illustrate a detailed description to help you prepare for the exam. Let’s start with expert learning resources and a study guide.
Refer the Exam Guide
To clear any examination it is very important to know the course content and outline. The Interest Rate Derivatives: A Beginner’s Module (Foundation) has the following modules which you should prepare and practice:
- Interest Rates and Time Value Of Money
- Money and Fixed Income Markets
- Government Bonds
- Interest Rate Derivatives
- Interest Rate Futures (IRF) in India
- An Explanation of Key Concepts in IRF
- Applications and Trading of Interest Rate Futures
Learning Resources
It is very important to prepare with the right resources. To clear any examination all you need to work hard but efficiently and in a smart manner. To help in your preparation for the Interest Rate Derivatives: A Beginner’s Module (Foundation) examination we have provided the resources:
Reference Books
Books are an essential part of the preparation, searching for the right study material has always been a difficult and tedious task. For the Interest Rate Derivatives: A Beginner’s Module (Foundation) examination you can refer to the following books:
- Interest Rate Derivatives by IIFB
- Interest Rate Derivatives Workbook by Penning Aubrey
Join Study Groups
Joining study groups is a good way to get yourself fully involved with the certification exam you apply for. Furthermore, these groups will help you get up to date with the latest changes or any update happening exam. Also, these groups contain both beginners as well as professionals. You can ask any query related to the exam or you can talk about the exam without any hesitation. Moreover, here you can start any discussion about the issue related to the exam or any query. By doing so, you will get the best possible answer to your query.
Start Practicing with Testpreptraining
Practice makes a man perfect. Practice will actually help you identify the aspects of your preparation you need to work upon. After completing your preparation you should be taking sample papers and practice tests. This will help you with self-assessment and bring out a confident person in you on the day of the exam. The evolution of practice tests has done nothing but added more to its generosity. They are considered as one of the most efficient sources to study for the exam. Therefore, it is highly advised to perform more and more practice tests. Start preparing with Testprep Training now!
