Teams from Charles University’s Institute of Economic Studies in Prague (Czech Republic) and from the University of Economics in Bratislava (Slovakia) have won the EIB Institute interest rate case presented in the framework of the second Rotman European Trading Competition (RETC) hosted by LUISS Guido Carli University of Rome from August 25th to August 27th. .

The case challenged students’ understanding of bond pricing based on news and benchmark interest rates derived from four non-tradable government zero-coupon bonds. Students had to price several coupon bonds based on the benchmark rates and news. The news, released throughout the case, could have an impact on the benchmark rates, and thus on the fair prices of the tradable coupon bonds.

The RETC is an invitational contest that brings together more than 100 students from all over Europe, to participate in a simulated market challenge. It is similar to the very successful Rotman International Trading Competition (RITC) held annually in Toronto, Canada, where 50 schools from around the world meet and compete in simulated markets.

Click here to see the video of the award ceremony with Emma Marcegaglia, President of LUISS, Sergio Marchionne, Ferrari’s President and CEO and Dario Scannapieco, Vice-President of the EIB.