RMIT Classification: Trusted

Course code and name: BAFI3182(SGN): Financial Markets: BAFI3230 (HN)

Deadline for submission: Week 5, Monday, 31 March 2025 (11.59 P.M. Vietnam time)

Weight: 10%

Length & Word Count:

750 words (+10% maximum). This includes everything except the cover page, executive summary/abstract,
appendices, and reference list.

Penalty: if you exceed the word limit (starting from 825), deduct 5% of the assessed mark for each 100 words.
It is compulsory to specify the word count on the cover page.

Note: You can only submit your work twice; multiple submissions will not be allowed.

Type: Individual report

Submission instruction: Submit your work via Turnitin using Microsoft Word.

Feedback mode: Feedback and grading results will be provided in the Canvas grade-Mark section within two
weeks after the submission date.

Late work:

A penalty of 10% of the total possible mark (of the task) per day will apply to a late submission. It means that a
penalty of 0.42% of the total possible mark (of the task) per hour will apply to a late submission. The unit for
calculating late penalties is 'hour'. Any late submission received after the designated deadline, whether by 1
second or up to one hour, will be treated as a complete one-hour late submission, resulting in a penalty of 0.42%
of the total possible mark. Weekend days (Saturday and Sunday) are considered when counting the total late
days for electronic submissions.

Note: Please note that using/attempting to use any tricks to reduce word count or gain academic advantages
is considered academic misconduct.

Learning Objectives Assessed

• CLO1: Identify the nature and key components of financial systems domestically and globally to
apply in diverse contexts.
• CLO2: Identify the nature, role, and determinants of the structure and level of interest rates in
economics and financial contexts.
• CLO3: Demonstrate the basic financial mathematics applied to the pricing of money and capital
market instruments.

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• CLO4: Analyze the characteristics and functions of the main financial intermediaries operating in
financial systems in a global context.

Ready for Life and Work

This assignment prepares you:

• Prepare to work in a range of jobs in the financial services industry, especially in the money
markets

• Develop RMIT's generic graduate attributes

• Develop employability or career-development-learning skills

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Assessment 1

Title: Financial Market Insights: Analysing Yield Curves and Interest Rates

Introduction:

As a financial analyst of your banks, your objective is to conduct a thorough analysis of the local
financial markets in the assigned country using the yield curve. The yield curve is a primary
indicator observed by investors, and policymakers. This assignment requires you to examine the
most recent yield curve data, interpret its implications, and assess its effects on the financial
markets.

You are assigned one of the following countries based on the last digit of your student ID: Finland,
Italy, Nigeria, Brazil, Egypt.

Please refer to the table below to determine your assigned country.

The last digit of your student ID: Assigned country

Task 1: Investigating the Yield Curve

1. Data Collection: Research and identify a reliable source for the latest yield curve data. You
can use financial news websites, government agencies, or financial data providers.
Alternatively, you can visit World Government Bonds to access the most updated yield curve
data for the assigned country.
2. Yield Curve Analysis:
a. Provide a screenshot of the yield curve relevant to your assigned country and briefly
explain the trend of yield curve.
b. Explain and analyze the observed shape of the yield curve, examining its structure with
respect to time, risk, and other influencing factors. Your analysis must integrate relevant
theories, additional data, and research evidence and must present a coherent and well-
structured written argument. You should clearly provide references, and the sources of
data used.

Task 2: Investigating the Interest Rates

1. Event Analysis:

a. Research and collect 3 recent events in the latest years (2023/2024/2025) and explain
how these events impacted the past or current level of interest rates in the assigned
market. These events could include changes in economic indicators, monetary policy
decisions, and geopolitical developments etc.

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b. Determine any one recent event from the selected events in part a that could
potentially impact the future yield curve shape in the assigned country. Explain how
this event might influence the shape, or/and movement of the yield curve.

2. Customer Advisory:
a. Investment Strategy: Assume your client intends to deposit USD 100,000, converted to
the equivalent amount in the local currency. Based on your research on the financial
system of the assigned country, provide thorough analysis and recommendations on
suitable investment opportunities and strategies (both short-term and long-term) that
would provide optimal returns for the client. Justify your recommendations with
numerical calculations and supporting evidence. Demonstrate these calculations using
methods such as simple and compound interest, effective interest rate calculations, and
the pricing of discounted or fixed-income securities. Provide a recent screenshot of
applicable interest rates in the appendix for reference.
b. Risk Assessment: Assess the potential risks associated with your recommended strategy,
considering the current economic environment and interest rate trends.

Conclusion

Summarize your overall findings and provide recommendations for your bank's investment
strategy in the assigned country. Highlight any potential opportunities or risks that should be
considered based on your yield curve and interest rate analysis.

Instruction:

Report Format:

Your report should be structured in the following manner:

1. Introduction:

Briefly introduce the assignment's objective and the context of the assigned country.

2. Task 1: Investigating the yield curve

3. Task 2: Investigating the Interest rates

4. Conclusion

5. References

Note: Plagiarism will not be tolerated and may result in penalties as per the academic institution's
policies.

Good luck with your assignment!

Note: Rubrics are available on Canvas