Financial Mathematics (L.7) (G5078)
15 credits, Level 7 (Masters)
You will study specialised mathematical methods needed to solve financial problems. The module will equip you with skills to understand the calculation of monetary values under fluctuating interest and inflation, and to be capable of calculating investment returns using money value models.
You will study interest rate theory and construct the mathematical framework to describe:
- generalised cash flows
- time value of money
- real and money interest rates
- compound interest functions
- equations of value and loan repayment schemes.
Following this, you will learn how to use these mathematical tools and methods in topics such as investment project evaluation and comparison, finally considering more complicated applications of interest rate theory such as the valuation of securities.
Questions may include:
- What is an appropriate money value model in order to calculate my investment return? Can we decide which model is better for us and use that?
- How much overall interest will you pay for your mortgage plan? Which mortgage plan is better for you?
- How do banks calculate your monthly payments for a loan?
20%: Coursework (Portfolio, Problem set)
80%: Examination (Unseen examination)
Contact hours and workload
This module is approximately 150 hours of work. This breaks down into about 33 hours of contact time and about 117 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.
We regularly review our modules to incorporate student feedback, staff expertise, as well as the latest research and teaching methodology. We’re planning to run these modules in the academic year 2023/24. However, there may be changes to these modules in response to COVID-19, staff availability, student demand or updates to our curriculum. We’ll make sure to let our applicants know of material changes to modules at the earliest opportunity.
This module is offered on the following courses: