Financial Mathematics I

Catalog description

An introduction to financial mathematics with emphasis on the theory behind formulas for present and accumulated values of cash flows. Topics include simple and compound interest, the time value of money, cash flows, yield rates, annuities, loans, and bonds. Also includes an introduction to financial economics, examining mathematical formulas for forwards, futures, options, hedging and swaps. This course prepares students for the second required examination (FM/2) in the Actuarial Profession. Prerequisites: MAT-253 and MAT-223.