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Mathematics of Finance I (ACTL90001)
Graduate courseworkPoints: 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
Email: pche@unimelb.edu.au
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 |
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Fees | Look up fees |
Topics include data analysis, the principles of actuarial modelling, the description of financial transactions; the understanding of real and nominal interest rates, the time value of money, the present value and accumulated value for a given cashflow, the term structure of interest rates; the duration, convexity and immunisation of cashflows; the equation of value and its usage to solve various practical problems, project appraisals.
Intended learning outcomes
- 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 cashflow 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.
- Show an understanding of duration, convexity and immunization of cashflows.
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: 3 November 2022
Eligibility and requirements
Prerequisites
Entry into one of:
Master of Actuarial Science (MC-ACTSC)
Master of Actuarial Science (Extended) (MC-ACTSCEX)
Master of Actuarial Science (Enhanced) (MC-ACTSCEN)
Graduate Diploma in Actuarial Science (GD-ACTSC)
Corequisites
None
Non-allowed subjects
None
Recommended background knowledge
- Students should have a background in mathematics
- Students should be competent in the use of Excel
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: 3 November 2022
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
| First half of the teaching period | 15% |
Assignment 2
| Second half of the teaching period | 15% |
End-of-semester exam
| During the examination period | 70% |
Last updated: 3 November 2022
Dates & times
- Semester 1
Principal coordinator Ping Chen Mode of delivery On Campus (Parkville) Contact hours A 2 hour seminar and a 1 hour workshop 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
Email: pche@unimelb.edu.au
Time commitment details
Estimated total time commitment of 170 hours per semester
Last updated: 3 November 2022
Further information
- Texts
Prescribed texts
There are no specifically prescribed or recommended texts for this subject.
- Related Handbook entries
This subject contributes to the following:
Type Name Course Graduate Diploma in Actuarial Science Course Master of Actuarial Science - 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: 3 November 2022