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ACSC12-201: 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 2019 [Standard Offering]
  • January 2020 [Standard Offering]
Study abroadAvailable to Study Abroad students
Study areas
  • Actuarial Science
Subject fees
  • Commencing in 2018: $4,247
  • Commencing in 2019: $4,290

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.


Please check the subject outline for pre-requisite subjects.

Subject outlines

Subject dates

Standard Offering
Enrolment opens12/11/2017
Semester start15/01/2018
Subject start15/01/2018
Cancellation 1?29/01/2018
Cancellation 2?05/02/2018
Last enrolment28/01/2018
Last withdrawal?09/02/2018
Teaching census?09/02/2018