You need to split them into two separate foreign keys, and you should probably (but don't have to) name them;
CREATE TABLE subject(
subject_code CHAR(7),
subject_desc VARCHAR(255) NOT NULL,
no_of_units TINYINT UNSIGNED NOT NULL
CHECK(no_of_units >= 0 AND no_of_units < 13),
prerequisite_1 CHAR(7),
prerequisite_2 CHAR(7),
PRIMARY KEY(subject_code),
FOREIGN KEY fk_pr1(prerequisite_1) REFERENCES subject(subject_code),
FOREIGN KEY fk_pr2(prerequisite_2) REFERENCES subject(subject_code)
) ENGINE=INNODB;