Theory of Interest.

Catalog description

Students derive the mathematical principles behind financial instruments involving interest. Topics may include amount functions, interest rates and yields, force of interest, special annuity types, bonds, yield curves, and interest rate sensitivity. Also included is a discussion of the mathematics of financial derivatives. This course covers the content on which the joint Society of Actuaries/Casualty Actuarial Society Exam FM/2 on mathematical interest theory is based. Prerequisite: Grade of C or better in Math 1430.