Time value of money, interests and financial schemes (simple interest, compounded interest, continuous interests etc.)
Amortization tables.
Internal rate of return and Present Value to judge investment convenience.
Bonds pricing, duration, convexity.
Excel programming and basics of computer coding.
D.Lovelock, M.Mendel, A.L. Wright – An Introduction to the Mathematics of Money, Springer Chapters: 1, 2, 3, 4, 5, 6, 8
Learning Objectives
Learn basic concepts like time value of money, discounting and compounding, basic financial modelling.
Learn how to choose between different financial investments using mathematical thinking.
Prerequisites
Basic Mathematics (first and second order derivative, Taylor's expansion, limits, logarithms)
Teaching Methods
Online lessons (according to Covid-19 dispositions), and monthly assignments (not compulsory)
Further information
First lesson of the week will usually be theory. Second lesson of the week will be exercises and coding.
Type of Assessment
Written final exam with exercises
Course program
-time value of money
-interests
-financial schemes
-amortization tables
-IRR
-duration, convexity
-bonds pricing
-Excel coding