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.
|Faculty||Bond Business School|
|Study abroad||Available to Study Abroad students|
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.
STAT11-112 - Quantitative Methods