F78AA Actuarial and Financial Mathematics A

Dr Alistair WallisDr Karamjeet SinghDr Andres Barajas Paz

Course co-ordinator(s): Dr Alistair Wallis (Edinburgh), Dr Karamjeet Singh (Malaysia), Dr Andres Barajas Paz (Dubai).

Aims:

To introduce the student to simple mathematical models of cashflows accumulated or discounted at interest, and to develop skill in applying these models to real financial contracts and transactions

Summary:

  • Simple interest
  • Compound interest and discount
  • Time units and effective rates of interest
  • Accumulations and present values of discrete-time cashflows
  • Varying rates of interest
  • Annuities
  • Yields
  • Measuring rates of return
  • Loan schedules
  • Fixed-interest securities
  • Discounted Cash Flows

Detailed Information

Course Description: Link to Official Course Descriptor.

Pre-requisites: none.

Linked course(s): F78AB Actuarial and Financial Mathematics .

Location: Edinburgh, Malaysia.

Semester: 1.

Syllabus:

  • Simple interest
  • Compound interest and discount
  • Time units and effective rates of interest
  • Accumulations and present values of discrete-time cashflows
  • Varying rates of interest
  • Annuities
  • Yields
  • Measuring rates of return
  • Loan schedules
  • Fixed-interest securities
  • Discounted Cash Flows
  • Stochastic interest rate models
  • Inflation indexing and index-linked bond

Reading list:

  • Garrett, S.J. (2013). An Introduction to the Mathematics of Finance (second edition). Butterworth-Heinemann.
  • Zima, P. & Brown, R.L. (1996). Schaum’s Outline: Mathematics of Finance (Second Edition), McGraw Hill.

 

SCQF Level: 8.

Credits: 15.

Other Information

Help: If you have any problems or questions regarding the course, you are encouraged to contact the course leader.

Canvas: further information and course materials are available on Canvas