Mathematics of Finance I (ACTL90001)

Intended learning outcomes

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