Financial Mathematics II.

Catalog description

This course is the second semester of one-year financial mathematics. The course starts with reviewing bonds and bond evaluations. New topics include: discount model in common stock evaluation, analysis of term structure of interest rates, concepts of duration and convexity, and using and convexity to approximate bond price changes with respect to interest rate change, cash flow matching, immunization (including full immunization), Redington immunization, interest rate swaps. This course, together with MATH 121 , prepares students for the Society of Actuaries Financial Mathematics examination. Prerequisite: MATH 121 with a “C-“ or better or permission of instructor.