Mathematics

Financial Mathematics

Module code: G5078
Level 7 (Masters)
15 credits in autumn teaching
Teaching method: Lecture
Assessment modes: Coursework, Unseen examination

You will study generalized cash flows, time value of money, real and money interest rates, compound interest functions, quations of value, loan repayment schemes, investment project evaluation and comparison, bonds, term structure of interest rates, some simple stochastic interest rate models and project writing.

Module learning outcomes

  • Systematic understanding of the valuation of cash flows under fluctuating interest and inflation.
  • Ability to evaluate, analyse and disseminate a real world investment project by writing an easy to understand financial report.
  • Capability of calculating investment returns using money value models.
  • Ability to describe how a loan is repaid by regular instalments.