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Mathematics of Finance I (ACTL90001)
Graduate courseworkPoints: 12.5Online
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
Email: pche@unimelb.edu.au
Overview
| Availability | Semester 1 - Online |
|---|---|
| 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: 7 December 2022
Eligibility and requirements
Prerequisites
Admission into one of:
- MC-ACTSC Master of Actuarial Science
- MC-ACTSCEX Master of Actuarial Science (Extended)
- MC-ACTSCEN Master of Actuarial Science (Enhanced)
- GD-ACTSC Graduate Diploma in Actuarial Science
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: 7 December 2022
Assessment
| Description | Timing | Percentage |
|---|---|---|
Assignment 1
| First half of the teaching period | 10% |
Assignment 2
| Second half of the teaching period | 10% |
Mid-semster exam
| Mid semester | 10% |
End-of-semester exam
| 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: 7 December 2022
Dates & times
- Semester 1 - Online
Principal coordinator Ping Chen Mode of delivery Online Contact hours 2 x 1 hour recorded lectures and 1 hour live online tutorial. 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
Email: pche@unimelb.edu.au
Time commitment details
Estimated total time commitment of 170 hours per semester
Last updated: 7 December 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: 7 December 2022