MA 27300 - Introduction To Financial Mathematics

A mathematical treatment of some of the fundamental concepts of financial mathematics and their application to business situations and basic risk management. Includes discussions of interest rates, discount rates, annuity valuation, bond valuation, cash flow valuation, spot rates, forward rates, Macaulay duration, modified duration, convexity, immunization, and asset-liability management. Provides preparation for the SOA/CAS Actuarial Exam FM/2.

Preparation for Course
P or C: MA 16600, MA 22800, or MA 23000 with grade of C- or better.

Cr. 3.
Student Learning Outcomes
1. Demonstrate knowledge of key concept, including interest and discount rates, present and future value, annuity, perpetuity, yield rate, allocation of investment income, duration, convexity, immunization, bonds, certificates of deposit, mortgage, and stocks.
2. Demonstrate the ability to apply the key concepts in financial scenarios.