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The objective of this course is to undertake a rigorous study of fixed income securities. The course is quantitatively oriented and requires some background in calculus and statistics. At the end of the term, the expectation is that participants will be comfortable doing three things. First, how to manage interest rate risk. Second, how to value securities with cash flows that are sensitive to movements in interest rates. Third, how to determine the optimal exercise policy for a variety of embedded options in fixed income securities (e.g., when should a bond be called.). While the perspective of this course is from the viewpoint of a bond investor or a bond trader, individuals working in corporate finance need to understand similar material. Evaluating an investment in a fixed income security is the mirror image of the problem faced by a corporation in deciding whether or not to issue a bond.