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Introductory Financial Mathematics (ACTL20001)
Undergraduate level 2Points: 12.5On Campus (Parkville)
For information about the University’s phased return to campus and in-person activity in Winter and Semester 2, please refer to the on-campus subjects page.
About this subject
- Overview
- Eligibility and requirements
- Assessment
- Dates and times
- Further information
- Timetable(opens in new window)
Contact information
Semester 1
Please refer to the LMS for up-to-date subject information, including assessment and participation requirements, for subjects being offered in 2020.
Overview
Availability | Semester 1 |
---|---|
Fees | Look up fees |
This subject aims to provide students with basic training on modern financial mathematics methods, which covers an overview of data analysis, principles of actuarial modelling and financial transactions, the understanding of real and nominal interest rates, the time value of money methods, bond pricing methods, assets replication methods, the equation of value methods, and project appraisals methods. This subject focuses on applying the above methods to the mathematical modelling of financial markets.
Intended learning outcomes
On successful completion of this subject, students should be able to:
- Describe sources of data, the aims and conducting of data analysis, and the principles of actuarial modelling in the solution of a range of practical problems;
- Describe and apply the main methods of finding the accumulation or present value of a payment, or a series of payments under simple and compound interest and discount;
- Analyse and solve equations of value for the price or yield of a bond, the present value or yield of an ordinary share or property;
- Construct and analyse a loan schedule, including cases when terms of a loan are altered;
- Explain the key features of the main types of financial assets, including shares, bonds, property and derivatives
- Show how discounted cash-flow and equation of value techniques can be used in investment project appraisal;
- Demonstrate a knowledge and understanding of real and money interest rates, and the term structures.
- Demonstrate an understanding of duration, convexity and immunisation of cash-flows.
Generic skills
-
High level of development: written communication; problem solving; application of theory to practice; synthesis of data and other information; use of computer software.
Last updated: 11 April 2024
Eligibility and requirements
Prerequisites
Please note: Students who have completed UMEP subjects must also complete MAST20026 Real Analysis. Please contact Stop 1 if you have any queries about the credit you received from your extension studies.
Students must meet one of the below:
- A total of 150 (out of 200) or more across MAST10006 or MAST10021 and MAST10007 or MAST10022
- A total of 120 (out of 200) or more across both MAST10008 and MAST10009 with a pass in each subject;
- A total of 135 (out of 200) or more across MAST10007 or MAST10022 and MAST10009 with a pass in each subject;
- A total of 135 (out of 200) or more across MAST10008 and MAST10006 or MAST10021 with a pass in each subject;
- A pass in MAST10019 Calculus Extension Studies plus a total of 135 (out of 200) or more across both MAST10018 Linear Algebra Extension Studies and MAST20026 with a pass in each subject;
- A pass in MAST10019 Calculus Extension Studies plus a total of 135 (out of 200) or more across MAST10007 or MAST10022 and MAST20026 with a pass in each subject;
- A total of 135 (out of 200) or more across both MAST10018 Linear Algebra Extension Studies and MAST10009 with a pass in each subject;
- A total of 150 (out of 200) or more across both MAST10018 Linear Algebra Extension Studies MAST10006 or MAST10021
- A total of 120 (out of 200) or more across both MAST10013 UMEP Mathematics for High Achieving Students and MAST10009 with a pass in each subject.
Code | Name | Teaching period | Credit Points |
---|---|---|---|
MAST10006 | Calculus 2 |
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
MAST10021 | Calculus 2: Advanced | Semester 2 (On Campus - Parkville) |
12.5 |
MAST10007 | Linear Algebra |
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
MAST10022 | Linear Algebra: Advanced | Semester 1 (On Campus - Parkville) |
12.5 |
MAST10008 | Accelerated Mathematics 1 | Semester 1 (On Campus - Parkville) |
12.5 |
MAST10009 | Accelerated Mathematics 2 | Semester 2 (On Campus - Parkville) |
12.5 |
MAST20026 | Real Analysis |
Semester 2 (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
|
12.5 |
Corequisites
None
Non-allowed subjects
None
Recommended background knowledge
Please refer to Prerequisites and Corequisites.
Inherent requirements (core participation requirements)
The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.
Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home
Last updated: 11 April 2024
Assessment
Due to the impact of COVID-19, assessment may differ from that published in the Handbook. Students are reminded to check the subject assessment requirements published in the subject outline on the LMS
Description | Timing | Percentage |
---|---|---|
Assignment 1 (Week 5-8)
| First half of the teaching period | 15% |
Assignment 2 (Week 10-12)
| Second half of the teaching period | 15% |
Final Exam
| During the examination period | 70% |
Last updated: 11 April 2024
Dates & times
- Semester 1
Principal coordinator Ping Chen Mode of delivery On Campus (Parkville) Contact hours Two 1-hour lectures and a 1-hour tutorial per week Total time commitment 170 hours Teaching period 2 March 2020 to 7 June 2020 Last self-enrol date 13 March 2020 Census date 30 April 2020 Last date to withdraw without fail 5 June 2020 Assessment period ends 3 July 2020 Semester 1 contact information
Time commitment details
Estimated total time commitment of 170 hours.
Last updated: 11 April 2024
Further information
- Texts
Prescribed texts
You will be advised of prescribed texts by your lecturer.
Recommended texts and other resources
Compound Interest and its Applications, Fitzherbert and Pitt, 2013
- Breadth options
This subject is available as breadth in the following courses:
- Bachelor of Arts
- Bachelor of Design
- Bachelor of Environments
- Bachelor of Fine Arts (Acting)
- Bachelor of Fine Arts (Animation)
- Bachelor of Fine Arts (Dance)
- Bachelor of Fine Arts (Film and Television)
- Bachelor of Fine Arts (Music Theatre)
- Bachelor of Fine Arts (Screenwriting)
- Bachelor of Fine Arts (Theatre)
- Bachelor of Fine Arts (Visual Art)
- Bachelor of Music
- Available through the Community Access Program
About the Community Access Program (CAP)
This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.
Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.
- Available to Study Abroad and/or Study Exchange Students
This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.
Last updated: 11 April 2024