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ACSC12-201: Financial Mathematics

Description

This subject offers a foundation in compound interest theory which underpins a number of common financial calculations.  This theoretical knowledge is supplemented with application to a variety of valuation and investment decisions. An introduction to simple stochastic models is also provided.

Subject details

TypeUndergraduate
CodeACSC12-201
EFTSL0.125
FacultyBond Business School
Semesters offered
  • January 2021 [Standard Offering]
  • January 2022 [Standard Offering]
Credit10
Study areas
  • Actuarial Science
Subject fees
  • Commencing in 2020: $5,010
  • Commencing in 2021: $5,260

Learning outcomes

1. Use discounted cash flow techniques to calculate home loan repayment schedule, perform project appraisal and determine capital budgeting requirements.
2. Explain the investment and risk characteristics of a variety of investment assets.
3. Demonstrate an understanding of the term structure of interest rates, the concept of spot rate, forward rate, duration of a series of cash flows, and immunisation.
4. Calculate the delivery price and the arbitrage-free value of a forward contract.
5. Apply probability rules and concepts relating to discrete and continuous random variables. Demonstrate an understanding of simple stochastic models for investment returns.

Enrolment requirements

Requisites: ?

Nil

Assumed knowledge:

Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.

Assumed Prior Learning (or equivalent):

Possess demonstrable knowledge in elementary probability theory, statistics, elementary calculus and linear algebra to the level of a unit such as STAT11-112 Quantitative Methods.

Restrictions: ?

Nil

Subject outlines

Subject dates

Standard Offering
Enrolment opens10/11/2019
Semester start13/01/2020
Subject start13/01/2020
Cancellation 1?27/01/2020
Cancellation 2?03/02/2020
Last enrolment26/01/2020
Withdraw – Financial?08/02/2020
Withdraw – Academic?29/02/2020
Teaching census?07/02/2020