MATH 309

Catalog description

Develops a practical understanding of financial mathematics and interest theory in both discrete and continuous time. This theory includes the fundamentals of how annuity functions are applied to the concepts of present and accumulated value for various cash flow streams and how this is used for future planning in valuation, pricing, duration, immunization, and investment. Topics include: rates of interest and discount, the force of interest, level and varying annuities, evaluation of financial instruments (e.g. bonds, stocks, leveraged strategies), measures of interest rate sensitivity, and the term structure of interest rates. Offered annually.