# Financial Math

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This course provides students with a fundamental knowledge of financial mathematics. Student will learn how to apply this knowledge when understanding calculating the time value of money, both present and accumulated. There will be a focus on various cash flows as they apply to reserving, pricing, investments, and budgeting. Student will also be introduced to derivatives and no-arbitrage. This course will provide students the basic material to be mastered for the Financial Mathematics professional Examination.

This undergraduate-level course is 5 To enroll, speak with an Enrollment Representative.

#### Course details:

Credits: 3
Continuing education units: XX
Professional development units: XX
Duration: 5

#### Loans

• Calculate the outstanding balance of loan.
• Calculate the amount of principal and interest in any payment.
• Define Loan Terms.
• Explain the connection between the different components of a loan.

#### Bonds, General Cash Flow and Immunizations

• Define bond, general cash flow, and immunization terms.
• Explain the connection between the components of a bond.
• Describe constructing an investment portfolio based on 3 methods: 1) Full Immunization, 2)matching present value/duration, and 3) exactly matching cash flows.
• Calculate portfolio yield rate and duration.

#### Financial Economics Introduction

• Define Financial Market Investment Instrument related terms.
• Explain the connection between various investment products.
• Explain a put call parity calculation.
• Explain how the No-Arbitrage concept is used to calculate theoretical value of swaps, forwards, and futures.
• Compare different hedging strategies.
• Calculate the value of derivative contracts.

#### Time Value of Money (Miracle of Compound Interest)

• Define Interest calculation vocabulary.
• Identify 4 items necessary in an interest calculation.
• Explain the connection between different interest rate types.
• Describe the Equation of Value given a set of cash flows and an interest rate type value.
• Calculate the Time Value of Money.

#### Annuities and other Cash Flows not Contingent

• Define Annuity Terms.
• Explain the connection between the components of an annuity.
• Calculate an annuity.
• Describe the process to determine the price of stock using the dividend discount model.
Tuition for individual courses varies. For more information, please call or chat live with an Enrollment Representative.