Material Detail

In this bond market simulation, students take the role of banks who are buying and selling bonds in order to make profits and meet their capital requirements while maintaining their total asset value. After two normal rounds, the potential risks to some of the bonds is revealed with the bonds that lose their value determined by the roll of a die at the end of the third round. After the third round ends, any banks unable to make their capital requirements can be "bailed out" by the instructor acting as the Central Bank. In the fourth and (optional) fifth rounds, the trading proceeds as in rounds 1 and 2. Setup documents and tracking spreadsheet included.