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ACSC71-201: Financial Mathematics


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

FacultyBond Business School
Semesters offered
  • January 2023 [Standard Offering]
Study areas
  • Actuarial Science
Subject fees
  • Commencing in 2022: $5,310
  • Commencing in 2023: $5,450

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: ?


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.

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

Restrictions: ?


Subject outlines

Subject dates

Standard Offering
Enrolment opens14/11/2021
Semester start17/01/2022
Subject start17/01/2022
Cancellation 1?31/01/2022
Cancellation 2?07/02/2022
Last enrolment30/01/2022
Withdraw – Financial?12/02/2022
Withdraw – Academic?05/03/2022
Teaching census?11/02/2022