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Introductory Financial Mathematics (ACTL20001)
Undergraduate level 2Points: 12.5Dual-Delivery (Parkville)
Please refer to the return to campus page for more information on these delivery modes and students who can enrol in each mode based on their location.
About this subject
- Overview
- Eligibility and requirements
- Assessment
- Dates and times
- Further information
- Timetable(opens in new window)
Contact information
Semester 1
Overview
Availability | Semester 1 - Dual-Delivery |
---|---|
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: 22 March 2024
Eligibility and requirements
Prerequisites
Students must meet one of the following prerequisite options:
- 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 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 and MAST10019 Calculus Extension Studies with a pass in each subject;
- A total of 150 (out of 200) or more across both MAST10018 Linear Algebra Extension Studies and 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 |
Summer Term (Dual-Delivery - Parkville)
Semester 2 (Dual-Delivery - Parkville)
Semester 1 (Dual-Delivery - Parkville)
|
12.5 |
MAST10007 | Linear Algebra |
Summer Term (Dual-Delivery - Parkville)
Semester 2 (Dual-Delivery - Parkville)
Semester 1 (Dual-Delivery - Parkville)
|
12.5 |
MAST10008 | Accelerated Mathematics 1 | Semester 1 (Dual-Delivery - Parkville) |
12.5 |
MAST10009 | Accelerated Mathematics 2 | Semester 2 (Dual-Delivery - Parkville) |
12.5 |
MAST10021 | Calculus 2: Advanced | Semester 2 (Dual-Delivery - Parkville) |
12.5 |
MAST10022 | Linear Algebra: Advanced | Semester 1 (Dual-Delivery - Parkville) |
12.5 |
MAST20026 | Real Analysis |
Semester 2 (Dual-Delivery - Parkville)
Semester 1 (Dual-Delivery - 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: 22 March 2024
Assessment
Description | Timing | Percentage |
---|---|---|
Assignment 1
| First half of the teaching period | 15% |
Assignment 2
| Second half of the teaching period | 15% |
End-of-semester examination
| During the examination period | 70% |
Additional details
Important online examination information: This examination is the equivalent of a 2-hour assessment; however, students are provided with 3-hours to accommodate the time that will be required for typesetting of mathematical expressions and the uploading of documents.
Last updated: 22 March 2024
Dates & times
- Semester 1
Principal coordinator Ping Chen Mode of delivery Dual-Delivery (Parkville) Contact hours Two 1-hour lectures and a 1-hour tutorial per week Total time commitment 170 hours Teaching period 1 March 2021 to 30 May 2021 Last self-enrol date 12 March 2021 Census date 31 March 2021 Last date to withdraw without fail 7 May 2021 Assessment period ends 25 June 2021 Semester 1 contact information
Time commitment details
Estimated total time commitment of 170 hours.
Last updated: 22 March 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 (Production)
- 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: 22 March 2024