Financial Mathematics

Catalog description

Introduces students to fundamental concepts in financial mathematics: compound and simple interest, nominal and effective rates, present and future value, discount rates, force of interest. Covers annuities with both constant and variable cash flows, loans, amortization, loan refinancing, and bonds. Studies may also include term structure of interest rates, spot rates, arbitrage, duration, convexity, and immunization. Course overlaps with: T BUS 350 and B BUS 350. Prerequisite: either a minimum grade of 2.0 in TMATH 126, or a minimum grade of 2.0 in TMATH 109 and a minimum grade of 2.0 in TMATH 125. Offered: W.