(1)liquidity preference framework (2)equilibrium in the market for money 2.基本概念和知识点 Liquidity preference framework,opportunity cost 3.问题与应用（能力要求） using both the liquidity preference framework and the supply and demand for bonds framework,show why interest rates are procyclical (rising when the economy is expanding and falling during recessions) Why should a rise in the price level(but not in expected inflation)cause interest rates to rise when the nominal money supply is fixed? After studying this section,students are required to be familiar with the application of preference liquidity framework. 第五节changes in equilibrium interest rates in the liquidity preference framework 1.主要内容 (1),shifts in the demand for money (2)shifts in the supply of money (3)application 2.基本概念和知识点 Income effect.Price-level effect. 3.问题与应用（能力要求） will there be an effect on interest rates if brokerage commissions on stock fall?Explain your answer Why should a rise in the price level(but not in expected inflation)cause interest rates to rise when the nominal money supply is fixed? (三)思考与实践 思考题：l.explan why you would be more or less willing to buy a share of Microsoft stock in the following situations a.your wealth falls b.you expect the stock to appreciate in value c.the bond market becomes more liquid
11 （1）、liquidity preference framework （2）、equilibrium in the market for money 2. 基本概念和知识点 Liquidity preference framework, opportunity cost 3. 问题与应用（能力要求） 问题：using both the liquidity preference framework and the supply and demand for bonds framework, show why interest rates are procyclical (rising when the economy is expanding and falling during recessions) Why should a rise in the price level (but not in expected inflation) cause interest rates to rise when the nominal money supply is fixed? After studying this section, students are required to be familiar with the application of preference liquidity framework. 第 五 节 changes in equilibrium interest rates in the liquidity preference framework 1. 主要内容 （1）、shifts in the demand for money （2）、shifts in the supply of money (3) application 2. 基本概念和知识点 Income effect. Price-level effect. 3. 问题与应用（能力要求） 问题：will there be an effect on interest rates if brokerage commissions on stock fall? Explain your answer. Why should a rise in the price level (but not in expected inflation) cause interest rates to rise when the nominal money supply is fixed? （三）思考与实践 思考题：1.explan why you would be more or less willing to buy a share of Microsoft stock in the following situations: a. your wealth falls b. you expect the stock to appreciate in value c. the bond market becomes more liquid
d.you expect gold to appreciate in value e.prices in the bond market become more volatile 2 explain why you would be more or less willing to buy a house under the following circumstances a.you just inherited $100000 b.real estate commissions fall from6%of the sales price to%of the sales price c.you expect Microsoft stock to double in value next year d.prices in the stock market become more volatile e.you expect housing price to fall 思政融合：思考银行利率的变动是如何影响你的储蓄意愿的？ (四)教学方法与手段 采用讲练结合的方式进行 Chapter6 The risk and term structure of interest rates (一)目的与要求 1.Explain and explain three factors that affect the risk structure of interest rates 2.List and explain three theories to explain the difference of bond interest rates with different maturities (二)教学内容 第-节risk structure of interest rate 1.主要内容 (I)、default risk (2)、liquidity (3),income tax consideration (4)application 2.基本概念和知识点 Default risk,default-free bonds,risk premium,junk bonds,credit-rating 3.问题与应用（能力要求） 问题：which should have the higher risk premium on its interest rates,.a corporate bond with a Moondy'S Baa rating or a corporate bond with a C rating why? Risk premium on corporate bonds are usually anticyclical,that is,they decrease during business cycle expansions and increase during recessions.Why is this so? 12
12 d. you expect gold to appreciate in value e. prices in the bond market become more volatile 2 explain why you would be more or less willing to buy a house under the following circumstances a. you just inherited $100000 b. real estate commissions fall from 6% of the sales price to 5% of the sales price. c. you expect Microsoft stock to double in value next year d. prices in the stock market become more volatile e. you expect housing price to fall 思政融合：思考银行利率的变动是如何影响你的储蓄意愿的？ （四）教学方法与手段 采用讲练结合的方式进行。 Chapter 6 The risk and term structure of interest rates （一）目的与要求 1. Explain and explain three factors that affect the risk structure of interest rates 2. List and explain three theories to explain the difference of bond interest rates with different maturities. （二）教学内容 第一节 risk structure of interest rate 1. 主要内容 （1）、default risk （2）、liquidity （3）、income tax consideration (4) application 2. 基本概念和知识点 Default risk, default-free bonds, risk premium,junk bonds, credit-rating agencies,liquidity, 3. 问题与应用（能力要求） 问题：which should have the higher risk premium on its interest rates, a corporate bond with a Moondy’S Baa rating or a corporate bond with a C rating why? Risk premium on corporate bonds are usually anticyclical, that is , they decrease during business cycle expansions and increase during recessions. Why is this so?
After studying this section,students are required to be familiar with the risk structure of interest rates. 第二节term structure of interest rates 1.主要内容 (1).expectation theory (2),segmented market theory (3)liquidity premium and preferred Habitat theories (4),evidence on the term structure 2.基本概念和知识点 Expected theory.segmented market theory.vield curve.inverted vield curve. term structure ofinterest rates 3.问题与应用（能力要求） if the yield curve suddenly becomes steeper,how would you revise you prediction of interest rates in the future? If expectations of future short-term interest rates suddenly fall,what would happen to the slope of the yield curve? After studying this section,students are required to be familiar with the term structure of interest rates (三)思考与实践 思考题： 1.risk premiums on corporate bonds are usually anticyclical:that is they decrease during business cycle expansions and increase during recessions.Why is this do? 2 assuming that the expectations theory is the correct theory of the term structure. calculate the interest rates in the term structure for maturities of one to five years,and plot the resulting yield curves for the following series of one-year interest rates over the next five years a.5%.7%.70%.7%.70% b.5%.4%.4%.4%.4% 3.if yield curves,on average,were flat,what would this say about the liquidity(term)premiums in the term structure?Would you be more or less willing to accept the expectations theory?
13 After studying this section, students are required to be familiar with the risk structure of interest rates. 第二节 term structure of interest rates 1. 主要内容 （1）、expectation theory （2）、segmented market theory （3）、liquidity premium and preferred Habitat theories （4）、evidence on the term structure 2. 基本概念和知识点 Expected theory, segmented market theory, yield curve, inverted yield curve, term structure of interest rates. 3. 问题与应用（能力要求） 问题：if the yield curve suddenly becomes steeper, how would you revise your prediction of interest rates in the future? If expectations of future short-term interest rates suddenly fall, what would happen to the slope of the yield curve? After studying this section, students are required to be familiar with the term structure of interest rates. （三）思考与实践 思考题： 1. risk premiums on corporate bonds are usually anticyclical: that is they decrease during business cycle expansions and increase during recessions. Why is this do? 2 assuming that the expectations theory is the correct theory of the term structure, calculate the interest rates in the term structure for maturities of one to five years, and plot the resulting yield curves for the following series of one-year interest rates over the next five years a. 5%,7%, 7%，7%，7% b. 5%, 4%,4%,4%,4% 3. if yield curves, on average, were flat, what would this say about the liquidity(term)premiums in the term structure? Would you be more or less willing to accept the expectations theory?
In this class,students are required to finish some question given in class.The questions are about the calculation of risk premium and the term structure of interest rate (四)教学方法与手段 采用讲练结合的方式进行。 Chapter 7 The stock market,the theory of rational expectations,and the efficient market hypothesis (一)目的与要求 1.Master the method of calculating the price of common stock 2.Understanding the impact of new information on stock prices 3.Understanding adaptive expectations and rational expectations 4.Understanding why arbitrage opportunities imply the validity of the efficient market hypothesis 5.Understanding the Effective Market Hypothesis of the Stock Market 6 Understanding behavioral finance implies that the efficient market hypothesis is not valid (二)教学内容 第一节computing the price of common stock 1.主要内容 (1)one-price period valuation model (2)the generalized dividend valuation model (3)the Gordon growth model 2.基本概念和知识点 Stockholders,residual claimant,dividends,one-period valuation model, generalized dividend model,the Gordon Growth model 3.问题与应用（能力要求） 问题： Identify the cash flow available to an investor in stock,how reliable can these cash flows be estimated?Compare the problem of estimating stock cash flows to estimating bond cash flow.Which security would you predict to be more volatile? After studying this section,students are required to be familiar with the calculation of the price of one-period stock. 第二节how the market sets stock prices 14
14 In this class, students are required to finish some question given in class. The questions are about the calculation of risk premium and the term structure of interest rate. （四）教学方法与手段 采用讲练结合的方式进行。 Chapter 7 The stock market, the theory of rational expectations, and the efficient market hypothesis （一）目的与要求 1. Master the method of calculating the price of common stock 2.Understanding the impact of new information on stock prices 3.Understanding adaptive expectations and rational expectations 4.Understanding why arbitrage opportunities imply the validity of the efficient market hypothesis 5. Understanding the Effective Market Hypothesis of the Stock Market 6. Understanding behavioral finance implies that the efficient market hypothesis is not valid （二）教学内容 第一节 computing the price of common stock 1. 主要内容 （1）one-price period valuation model （2）the generalized dividend valuation model （3）the Gordon growth model 2. 基本概念和知识点 Stockholders, residual claimant, dividends, one-period valuation model, generalized dividend model, the Gordon Growth model 3. 问题与应用（能力要求） 问题： Identify the cash flow available to an investor in stock, how reliable can these cash flows be estimated? Compare the problem of estimating stock cash flows to estimating bond cash flow. Which security would you predict to be more volatile? After studying this section, students are required to be familiar with the calculation of the price of one-period stock. 第二节 how the market sets stock prices